The Nasarawa State House of Assembly has passed a landmark bill to regulate mining activities across the state, imposing strict penalties — including fines of up to N10 million — on violators.
The bill, which was passed during Tuesday’s plenary, seeks to control the issuance of land consent and community agreements between host communities and mining entities, News Agency of Nigeria (NAN) reports.
The legislation marks a strategic effort by the Assembly to bring order to the state’s booming but largely unregulated mining sector.
He explained that once the bill is signed into law by the governor, it would directly address the rampant illegal mining operations threatening the environment and socio-economic stability of mining host communities.
“This bill is a game-changer for Nasarawa State. It will not only regulate mining but also protect the interests of our communities and the state’s natural resources,” the Speaker said.
The bill prescribes stringent penalties for non-compliance, aiming to deter illegal operators and enforce discipline within the sector. According to the provisions, the Speaker noted:
“For corporate mining, entities/companies shall pay a fine of the sum of N10 million or a minimum of 2 years and a maximum of 5 years imprisonment.
“Any individual or person shall pay a fine of the sum of N5 million or a minimum of 2 years and a maximum of 5 years imprisonment.
“Any group of persons or individuals shall each pay a fine of the sum of N5 million or a minimum of 2 years and a maximum of 5 years imprisonment,” he said.
In a bid to foster inclusive development and shared prosperity, the law also mandates the establishment of a Community Development Fund (CDF).
Mining companies are required to contribute 5% of their annual revenue to the CDF, which will be dedicated to financing infrastructure and social welfare projects in mining communities.
“Mining entities/companies shall contribute 5 per cent of their annual revenue to the CDF. Fifty per cent of the funds in the CDF Account are to be utilised for cash payment to the benefitting community, whereas 50 per cent is to be directed towards project financing,” the Speaker explained.
This approach is aimed at ensuring that mining activities translate into tangible benefits for host communities, many of which have historically faced environmental degradation, displacement, and poverty without adequate compensation or social investment.
The motion for the bill to pass its third reading was moved by the House Majority Leader, Hon. Suleiman Azara, and was seconded by the Minority Leader, Hon. Luka Zhekaba.
With unanimous support, the House directed the Clerk to prepare a clean copy of the bill for the governor’s assent.
Nasarawa State is rich in solid minerals and has seen increased interest from investors and artisanal miners.
Nasarawa State is rich in solid minerals and has seen increased interest from investors and artisanal miners.
However, the absence of a strong regulatory framework has led to exploitation, insecurity, and environmental harm.
The new bill is expected to bring order to the sector, attract responsible investors, and ensure local communities benefit fairly from the mineral wealth.