Oyo Rep, Smato urges Federal Gov’t intervention in funding of exploration for data in solid mineral space
….says motion will transform Ogooluwa/Surulere Federal Constituency and Nigeria entirely
Member of House of Representatives, Ogooluwa/Surulere Federal Constituency, Hon. Makanjuola SMATO has called for the urgent intervention of the federal government in the funding of exploration for data in the solid minerals space to unlock the country mineral deposits and enhance foreign exchange earningeconomic growth.
Moving a motion at the floor of the House on Wednesday, the lawmaker noted that Nigeria is going through a difficult economic phase with dwindling foreign exchange inflows that is having a negative effect on the strength of the Naira, as it was described in recent times as one of the worst performing in Africa along side Ethiopia.
Smato, who is the chairman of the House Committee on Friendship Group to Pakistan, and the deputy chairman of the House Committee on Solid Minerals, said that Nigeria is blessed with abundant resources, during the colonial era and pre independence period.
He added that solid minerals were the nation’s primary source of income and that, with government intervention, deposits in Surulere/Ogooluwa federal constituency and other parts of the country with deposits, if explored to a bankable data level, will bring enormous foreign exchange inflow that will contribute significantly to our nations GDP.
The motion read: “URGENT NEED FOR FEDERAL GOVERNMENT INTERVENTION IN THE FUNDING OF EXPLORATION FOR DATA IN THE SOLSPACE TO UNLOCK OUR MINERAL DEPOSITS AND ENHANCE FOREIGN EXCHANGE EARNINGS AS WELL ECONOMIC GROWTH.
“The House notes that Nigeria is going through a difficult economic phase with dwindling foreign exchange inflows that is having a negative effect on the strength of our currency the Naira, as it was described in recent times as one of the worst performing in Africa along side Ethiopia.
Also notes that Nigeria thus far has been a mono economy with high dependence on oil and gas. Now, with the energy transition and the departure from the use of fossil fuels, we may begin to experience a decline in revenues from this sector.
Further notes that NNPC estimates to spend $400 million on frontier exploration alone every year in Nigeria. In the year 2021, NNPC spent N20 billion in seven months on Frontier exploration alone.
Aware that, Nigeria is blessed with abundant resources. During the colonial era and pre independence period, Nigeria’s main income was solid minerals. The KPMG Nigeria Mining Sector Brief, June 2024, listed the potential of a number of minerals as follows;
1. Coal has a reserve estimate of about 2.73 billion metric tons and proven reserves of 639 million tons.
2. Bitumen has an estimated 42.47 billion tons
3. Barite has an estimated 23 million metric tons
4. Lead – Zinc, have been observed along a belt of approximately 30 – 50 Km wide stretching for about 560km km in length from Eboyin state, through Benue, Bauchi, Adamawa, Taraba, Nasarawa and Plateau States.
5. Limestone, estimated reserve of 10.6 billion tons across 14 states.
6. Iron Ore has an estimated reservation of about 3 billion tons
7. Gold has estimated reserves of about 21.37 metric tons valued at $ 1 billion dollars the 2nd quarter of 2023.
Conscious that these deposits, if explored to a bankable data level, will bring enormous foreign exchange inflow that will contribute significantly to our nations GDP.
The House Resolves:
1. That the House urges the Federal Government to Appropriate the sum of $500 million or it’s equivalent for exploration as a special intervention in the solid minerals sector in the forth coming 2025 appropriation act.
2. Explore bilateral agreements on a government-to-Government level to get the required expertise at affordable rates for the exploration service and support technology transfer.
3. That the House mandates the committees on Appropriation, Finance, and Solid minerals to ensure compliance and report back with 6 legislative weeks with a clear financing plan.