AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORK FOR REGULATING THE IMPACTS OF MINING OF MINERALS ON THE ENVIRONMENT IN NIGERIA

CHAPTER ONE GENERAL INTRODUCTION

1.1 Background to the Study

Nigeria is endowed with vast reserves of solid minerals.¹ Almost all corners of Nigeria is blessed with solid mineral assets.² Minerals extraction is an integral part of human civilization.³No matter the method and technology used, mineral mining generally has some damaging effects on the environment.⁴ Consequently, the exploitation of solid minerals has been viewed from different perspectives by various scholars, analysts and interest groups.⁵ While some view the exploitation of such resources as necessary to provide basic societal or national needs, and thus ensure human sustenance and development⁶, others have considered the exploitation of these resources as a curse,⁷ cavalier, wanton waste and selfish; asserting that someAfrican and Asian countries, have exploited theseresources in unsustainable and inequitable manner.⁸

Solid minerals belong to the category of non-renewal resources;⁹ meaning that, their quantities as endowed by nature, once exhausted, cannot be replenished neither can they renew themselves. It is therefore clear that mineral resources are non-renewable assets and mining activities impact negatively on the environment.

Mining of solid minerals is one of the world‟s important industries and is the world‟s second oldest industry after agriculture.¹¹ Mining is a global industry, contributing to both national and global economic growth for over 100 years. Mineral resource exploitation may have the likelihood of degrading the environment and contributing to Green House Gas (GHG) emissions and Climate Change. Climate Change may also have possible implications on mining activities.¹² A discussion of the contributions of mining activities to the economic development of nations has also been highlighted in terms of inter alia wealth creation and Gross Domestic Products. Few examples of countries considered in terms of the contribution of mining to their GDP include Canada, Ghana, Botswana, DRC, South Africa and Nigeria.

For instance, in Canada, mining is one of the most important economic sectors and a major job creator. Approximately 375,000 people across Canada work in the mining and processing industries. Mining is the largest employer of Aboriginal peoples in Canada on a proportional basis and employment is poised to increase.¹³Mining contributed S36 billion to the country‟s GDP in 2010; 29% of the value of exports and earned S84 billion in taxes and royalties to the government. In addition, Canada has over 5,000 companies that have created jobs and economic growth for over 115 communities and employed 308,000 Canadians in 2010.¹⁴ In 2014, mining contributed S57 billion to the GDP and accounted for 18.2% of the value of Canadian goods export.

In another instance, despite a declining contribution to GDP and employment, South Africa‟s minerals value chain remains a pillar of its economy and makes South Africa major global player, accounting for a significant proportion of world production and reserves. The South Africa mining sector contributes 8.6%- some R263 million to GDP, creating over 500,000 direct jobs and an additional 500,000 indirect jobs. It accounts for 50% of forex, 12% of investment  and 13.2% of corporate tax receipts.¹⁶

The mining industry in Ghana is known to play a significant role in the country‟s growth and development as well as different economic sectors. The industry is the largest contributor, contributing to 35% of the country‟s export and 5% of GDP; it provides 1% of the country‟s total employment.¹⁷ Mining activities have ensured the development of infrastructure within different parts of the Country and enhanced the creation of industries. It generates USD 79m as government proceeds, the most significant of all is the direct royalty worth USD 42m it contributes. Mining in general also creates 7% employment opportunities in the informal sector. It contributes 5% of GDP.

In Nigeria, the contribution of the sector to the GDP was 0.28% in 2006, 0.34% in 2010, 0.36% in 2011, 0.6% in 2012, 2013 and 2014.¹⁹In a recent publication,²⁰ it was stated that the mining sect   or accounts for 0.3% of the national economy, 0.2% of exports and about USD 1.4 billion to the Nigerian GDP. In 2015, the contribution of the sector to the economy was put at between 0.5%-0.6% of the Country‟s GDP. These contributions appear to be insignificant when viewed particularly against the potentials and opportunities that could be derived from the industry. In other African Countries contribution to GDP is higher; for example, in Botswana it is 40%and DRC 25%.²¹

On the flip side of the foregoing account, are the negative impacts of mining on local and global environment, resulting in the degradation of the environment and its bearing on general earthly livelihood and sustainability. The devastating and deleterious impacts or effects of mining all over the world is by degradation of the general environment-land, air and water; human health; biodiversity and sustainable development. An important area or aspect of the contribution of mining to the degradation of the environment worth mentioning is the emerging issue of climate change and how climate change can impact on the mining sector.²² Consequently, a discourse of the projected or potential effects of climate change on the mining industry and the reverse effects of climate change on mining activities would, be considered in due course.