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TOPIC

“INVESTIGATING WHAT EFFORTS HAVE THE GOVERNMENT MADE TOWARD THE FORMALIZATION OF ARTISANAL AND SMALE-SCALE MINING IN NIGERIA”

YOUR WORKING GUIDE

Henry

If you are keen on exploring formalization of ASM in Nigeria, then what I would recommend is investigating what efforts have been made toward this end since the launch of the Ministry of Solid Minerals Project http://web.worldbank.org/external/projects/main?pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P086716.

I normally do not do students’ research but here is a list of potential sources below:

Verbrugge, B., Besmanos, B.

Formalizing artisanal and small-scale mining: Whither the workforce?

(2016) Resources Policy, 47, pp. 134-141. Cited 1 time.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84959331926&partnerID=40&md5=35de2acd57ef23c289bd337ac3164e68

DOI: 10.1016/j.resourpol.2016.01.008

DOCUMENT TYPE: Article

SOURCE: Scopus

Fold, N., Jønsson, J.B., Yankson, P.

Buying into formalization? State institutions and interlocked markets in African small-scale gold mining

(2014) Futures, 62, pp. 128-139. Cited 3 times.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84907595614&partnerID=40&md5=cc680bc85358865be8a366ba7886e426

 

DOI: 10.1016/j.futures.2013.09.002

DOCUMENT TYPE: Article

SOURCE: Scopus

Siegel, S., Veiga, M.M.

Artisanal and small-scale mining as an extralegal economy: De Soto and the redefinition of “formalization”

(2009) Resources Policy, 34 (1-2), pp. 51-56. Cited 44 times.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-60749111188&partnerID=40&md5=8ac8db6d7716ba6666ce90acc76100a0

de Haan, J., Geenen, S.

Mining cooperatives in Eastern DRC The interplay between historical power relations and formal institutions

(2016) Extractive Industries and Society, Article in Press.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84973879992&partnerID=40&md5=df58932faa64f8a77233dc6c15a4b13d

DOI: 10.1016/j.exis.2016.05.003

DOCUMENT TYPE: Article in Press

SOURCE: Scopus

Oramah, I.T., Richards, J.P., Summers, R., Garvin, T., McGee, T.

Artisanal and small-scale mining in Nigeria: Experiences from Niger, Nasarawa and Plateau states

(2015) Extractive Industries and Society, 2 (4), pp. 694-703.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84958768527&partnerID=40&md5=54da0afa9c5671536195a026857b0da0

DOI: 10.1016/j.exis.2015.08.009

DOCUMENT TYPE: Article

SOURCE: Scopus

Spiegel, S.J.

Shifting Formalization Policies and Recentralizing Power: The Case of Zimbabwe’s Artisanal Gold Mining Sector

(2015) Society and Natural Resources, 28 (5), pp. 543-558. Cited 3 times.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84929254031&partnerID=40&md5=a1fa3e1e9fcd31d3602e1970dddd711e

DOI: 10.1080/08941920.2015.1014606

DOCUMENT TYPE: Article

SOURCE: Scopus

Verbrugge, B.

The Economic Logic of Persistent Informality: Artisanal and Small-Scale Mining in the Southern Philippines

(2015) Development and Change, 46 (5), pp. 1023-1046. Cited 1 time.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84941048678&partnerID=40&md5=90eca90e32df569a4b8429068fc2285f

DOI: 10.1111/dech.12189

DOCUMENT TYPE: Article

SOURCE: Scopus

Geenen, S.

A dangerous bet: The challenges of formalizing artisanal mining in the Democratic Republic of Congo

(2012) Resources Policy, 37 (3), pp. 322-330. Cited 24 times.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84865588420&partnerID=40&md5=be2eb450574181eb024bc1d3debd75b2

DOI: 10.1016/j.resourpol.2012.02.004

DOCUMENT TYPE: Article

SOURCE: Scopus

Maconachie, R., Hilson, G.

Safeguarding livelihoods or exacerbating poverty? Artisanal mining and formalization in West Africa

(2011) Natural Resources Forum, 35 (4), pp. 293-303. Cited 23 times.

https://www.scopus.com/inward/record.uri?eid=2-s2.0-82255164480&partnerID=40&md5=f76e94a86afefb963bbc728484150beb

DOI: 10.1111/j.1477-8947.2011.01407.x

DOCUMENT TYPE: Article

SOURCE: Scopus

Perhaps the project could revolve around soliciting policymakers’ perspectives on what efforts have been made thus far to formalize activities, what the authorities see as formalization, and what else needs to be done as well as what has worked and hasn’t and why.  You would need to assemble a stakeholder map, and interview key people in the ministries, perhaps from the EITI, Ministry of Finance and Ministry of Solid Minerals.  At least, this is what I would suspect.

ASAP

GENERATE 30-35 QUESTIONNAIRE FROM YOUR RESEARCH QUESTION WHICH I WANTED TO SEND TO FEDERAL MMINISTRYOF MINE AHD NATURAL RESOURCES FOR MY DATA COLLECTION (ASAP)

LITERATURE REVIEW (ASAP) NOT DESCRIPTIVE

RESEARCH OBJECTIVES (4) ASAP

RESEARCH QUESTIONS (4) ASAP

Introduction and/or definition of research problem:  The introduction should set out the purpose and scope of the dissertation, clearly explaining what it is about, how it is structured, but more importantly, why the research is necessary and to whom. You need to ensure that the academic and applied rationale is well explained and justified. An academic rationale should answer the questions “Why don’t we know this already? Why is more study on this topic needed?” and an applied rationale should demonstrate the relevance of the topic to contemporary business environments. The section should end with the main aim and objectives of your study.

CHAPTER ONE

Introduction

• Background to the study
• Statement of the problem. (In the introduction, this must be clear and of managerial relevance. There must be some evidence that there is a problem.)
• Objectives of the study
• The research questions
• Significance of the study
• Scope of the study

Literature review (this may be more than one chapter): This section gives an overview of the context and background to the research problem. It builds on your problem definition and aims and objectives and so is an expansion of the concise arguments you make there. It is probably the section that will give you most scope to show off the wide range of sources you have consulted. Although based on existing literature, you should still present your material critically.

CHAPTER TWO

2.0 Literature Review

CHAPTER THREE

Methodology:  This section evaluates and justifies the research methodology that will be used to obtain the data to answer the research questions. It states the research problem, discusses the operationalisation of hypotheses (where relevant), discusses the research instrument used, the method of collecting the data – including sampling, the analysis of the data and the validity and reliability of data. It should contain enough detail to allow someone else to repeat your study.

Results: You should present your data in an appropriate form, which may include tables, graphs or in the case of qualitative data, verbatim quotes.

Select the format that best suits your data, and do not present your data in more than one form. Ensure that the text around your presented data pulls out the key findings, rather than repeats what is already given. A table/figure should never be presented without supporting text. Tables and figures should be clearly and consistently labelled either above or below, and the reader should be able to understand the table/figure from the title without referring to the text for explanations. Units of measurement, the year to which the data refer, gethe ographical area covered, and sources should be clearly stated. The labels in the text and in the lists should correspond exactly.

Critical analysis and discussion: It can be hard to know which section to discuss your results – this or the preceding one – and you may decide to combine these two sections into one or more chapters based on theme, depending on your topic and your supervisor’s views. However, what is vital is that your Dissertation contains sufficient analytical discussion in addition to the more descriptive ‘scene setting’ material of the literature review sections, and presentation of results. It is here that you will compare and contrast your findings with those already reported in the literature.

Conclusions:  Here you need to answer the “So what?” question. What significance do your research findings have? For whom? Why? and How? In this chapter you link the research problem with literature review and findings, stating what you can conclude based on the work conducted. Based on your conclusions you should comment on managerial implications, the limitations of the research, suggest further work and better ways to resolve the problem.

Full list of references used in the dissertation: You should provide correctly formatted bibliographic details for every citation included in the dissertation. Do not include material which is not referred to in your text

The dissertation should be no more than 15,000 words in total to include a 1,000-word Executive summary.

CHAPTER ONE

Introduction

CHAPTER TWO

Literature Review

CHAPTER THREE

Methodology

CHAPTER FOUR

Data Presentation

CHAPTER FIVE

Discussion of Results

CHAPTER SIX

Summary, Conclusion and Recommendations

References

Appendix I: Table of Findings

Appendix II: Questionnaires

LIST OF ABBREVIATION

ABSTRACT

Government Formalization of Small Scale Mining in Nigeria Sample Answer

Investigating what Efforts have the Government Made toward the Formalization of Artisanal and Small-Scale Mining in Nigeria

Abstract

Over the years, the proponents of formalization of artisanal and small-scale mining in Nigeria had provided support and direction that, what is believed, can contribute great development of the mining industry in the country. However, as it is witnessed today, the country’s mining industry is seemingly decreasing and substantially increasing informal artisanal and small-scale miners. This informal ASM has a strong influence on economic, environmental and social stability of the country. Moreover, despite the efforts made by the government to formalize ASM, the majority of its interventions have failed; resulting in low-quality production – this is clearly reflected in the industry’s contribution to the revenue.

This study will identify the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria, by using a quantitative approach. Research questionnaires will be provided to address any political, economic, social, technological, environmental and legal factors and other overlapping, complex drivers, constraints and issues that hinder towards the development of formalization of artisanal and small-scale miners.

To achieve economic development in mining, the researcher aim(s); (1) To evaluate the stability of the Government’s strategy towards a long-term institutionalized and technical mining industry. (2) To evaluate the efficiency of the Government’s sustainable management for artisanal and small-scale miners.

Keywords: Formalization of Artisanal and small-scale mining, informal artisanal and small-scale miners, adequacy of government effort

CHAPTER 1

Introduction

Nigeria is critically dependent on the products and services provided by tatural resources. Before the emergence of the petroleum industry, mining and agriculture were the country’s economic key factors. Regardless of the drastic shift of local labor and the Nigerian government to the petroleum industry, there are still several mining sectors struggling to survive in this industry. These are artisanal and small-scale mining sectors either works illegally or works outside the legal zone for mining. Therefore, this causes a tremendous drawback to the economy.

Moreover, Nigeria is blessed with abundant mineral resources that can be viewed as a large scale of profit. However, most mineral developments are exploited either by informal or in most cases illegal artisanal and small-scale miners, which uses unorganized techniques without any consideration for the environment or human health.

There had been policies and regulation that were constituted by the government. Moreover, in 1999, Minerals and Mining Decree (MMD of 1999), reviewed all mining activities in Nigeria (Lawal, 2001). The ministry had revised the law, the Nigeria Minerals Mining Act of 2007, and National Minerals and Metal policy of 2008 (Gyang et. al, 2010). However, despite several revisions and development of the policies and regulations the mining industry is still far from reaching its goal.

Promoting a competitive solid mineral industry in Nigeria requires an intensive review and update of fiscal, legal and regulatory frameworks, including the government’s goals and policy to encourage solid mineral development, either small or large scale of mining sectors. The government should be devoted to strengthening governance and transparency of mining in Nigeria.

This study aims to identify the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria, through these following question(s): (1) To what extent is the Government’s strategy stable for a long-term institutionalized and technical mining industry? (2) To what extent can the Government efficiently achieve a sustainable management for the artisanal and small-scale miners?

Background

In 1903, the Mineral Survey of the Northern Protectorates was established by the British colonial government, Artisanal and small-scale mining (ASM) in Nigeria. A large-scale initiative of exporting coal and tin started in 1960. ASM is a mining activity that uses raw or simple methods to extract and process minerals and metals on a small scale. Thus, it also envelops either all small, medium and informal, legal, and illegal miners who use simple or raw processes to extract minerals from secondary and primary ores. Nigeria does not have a well-developed large scale mining sector and most of the active mining is controlled by local entrepreneurs and artisans who works on smaller deposits, construction and industrial minerals that are non-licensed, unlike countries such as Ghana and Burkina Faso.

Most of the artisanal and small-scale mining in Nigeria operates outside current laws and regulations. Due to dwindling state of the economy and the unacceptable control of mining sectors, the government laid regulations and laws that formalized the artisanal and small-scale mining sectors. In 1995 Federal Ministry of Solid Minerals and Development, which today is known as Ministry of Mines and Steel Development, was created to formulate policies, provide information on mining potential and production operation with the aim of generating revenue. In spite all of the efforts made by the government; the mining industry is far from achieving the goal in contributing economic growth. Due to unorganized and underdeveloped mining industry, informal mining activities which involve artisanal and small-scale mining greatly affects the environment and the health of people involved in the industry. In some studies, informal artisanal and small-scale miners lack appropriate technology and funds hence the industry is reluctant or unable to assimilate best practices in their operations (Adefulu, 2010; Hentschel, 2002; Gyang et al., 2010; Lawal, 2001). Nevertheless, despite the advantageous advancement of mineral deposits and their contribution to the country’s economy, the potential for industrial and technological development, the crude manner of exploiting the resources can portray great danger to the community especially in the locations where the minerals are found.

This was also noted in a study by the Environmental Law Institute where the number of miners supporting the supply of mercury to process raw ore had suffered health, environmental, social and economic consequences (Adefulu, 2010; Gyang et al., 2010; Hentschel et al., 2002). Hazards posed by ASM from the process used to extract the gold ore, high levels of lead and the use of mercury poses a threat to significant public health and environmental risks.

The Nigerian government is taking positive risks in the formalization of artisanal and small-scale mining, such as the Steel Development’s Safer Mining Programme and the Ministry of Mines had organized in registering more artisanal mining associations and cooperatives, train miners on safer mining practices and introduced improved mining technologies. However, the current practice of ASM often falls outside the government’s scope and efforts.

Formalization of artisanal and small-scale mining, according to De Soto’s theory of ‘extralegality’, formalization is about absorbing existing customary practices that were developed informally by the miners into the mainstream of the country’s legal and economic affairs (Gyang et al., 2010; Lawal, 2001; Siegel & Veiga, 2009). Such as legal frameworks, institutional aspects, financial considerations, public health, and the environment. The revised act of 1999, which is the Mining and Minerals Act, also embraces the federal, local, and state or customary regulations and guidelines. Generally, it entails incentives for all parties to facilitate the formalization of miners, decentralization of cooperatives and licensing process, communication with the miners about the status and requirements and lastly, coordination with other miners.

Historically, the Nigerian banks have been averse to financing the mining industry due to a variety of different reasons such as; lack of understanding about the technicalities of the sector, unwilling to provide a long-term funding and most of the bank feasibility studies are unavailable. According to the article on the Mining Sector in Nigeria, this includes: understanding the technicalities of the sector, unwilling to deploy long-term funding and non-available of bankable feasibility studies in accordance to Joint Ore Reserve Committee specifications (AllAfrica, 2016; Collins & Lawson, 2014; Oladunjoye, O. & Okonkwo, 2015; Oguh, 2016).

The country is dependent on the foreign investors’ funding in financing the industry, despite the Nigerian banks’ capacity to participate in the development of the mining industry. There is a huge deficiant in the country’s infrastructure, such as inefficient power supply in some areas and transport challenges (inefficient transportation system and dilapidated roads). Moreover, due to poor management, country’s current challenging circumstances, changing economics, and neglect, this led to drop its existing operation and new investments in exploring and developing minerals, either from foreign or domestic investors.

The formalization of small-scale mining and artisanal in Nigeria had been in the mainstream within every project and the proposal made by the government. The concept of formalization of artisanal and small-scale mining is to improve a more sustainable and developed economy. Furthermore, this could help in reducing poverty, create employment and has the potential to generate revenue to the country via foreign exchange earnings.

However, despite the efforts made by the government to provide a more developed mining industry, there are several cases of illegal artisanal and small-scale miners in the country. This raises some questions: What efforts could have the government made towards the formalization of artisanal and small-scale mining? With all the laid policies, why is it not being followed? Where formalization policies go wrong? These questions are being raised by most of the project developers who want to attain a sustainable mining economy in Nigeria.

Objective

The researcher aims to investigate the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria with the following objectives: (i) To evaluate the need for suitable revisions and modernization of the legal and fiscal framework for mining in Nigeria. (ii)  to evaluate a suitable and sustainable way to increase the government’s long-time institutional and technical capacity in managing Nigeria, mineral resources.

Research Questions

The formalization of Nigeria’s artisanal and small-scale mining derived many questions that are needed to be answered;

(Q.1) To what extent is the need for revision and modernization of the legal and fiscal framework strategy suitable for the mining industry in Nigeria?

(Q.2) To what extent is the strategy of increasing the government long time institutional and technical capacity suitable to manage the mineral resources in Nigeria?

 Significance of the Study

The significance of the study is mainly to put emphasis on what efforts have the Government made towards the formalization of artisanal and small-scale mining in Nigeria. In spite of several revisions of the laid laws and policies, it is evident that the industry is continuously depleting. With this, the government will be cautious and knowledgeable what better actions will be taken to place an improvement. Moreover, this study aims to identify if the legal and fiscal framework are complex and bureaucratic for the artisanal and small-scale miner.

The following chapter is going to present the literature review on mining and its mining activities in Nigeria. Further discussion will be provided about the development of mining industry in the country and the challenges faced by the government towards the formalization of artisanal and small-scale mining in Nigeria.

 CHAPTER 2

Literature Review

2. Introduction

This chapter outlines the theoretical framework that is created to serve as a guideline for executing this research and enable the researcher to achieve the research objectives and answer the main research questions. The research question indicates a need for executing a strategic analysis that results in strategic directions that will provide the answer to the research questions given above.

Mining industry often deals with the process or business related to extraction and exploiting of ore or other solid minerals from mines. It is one of the growing industries in sub-Saharan regions in Africa. Companies often go to Sub-Saharan Africa because of its rich production of minerals and diamonds. It ranks third in the mineral reserves around the world and globally consists two-thirds of diamond deposits (Economywatch, 2010; Mutiso, 2016; Sub-Saharan Africa, 2012).

With the leading mining operations and explorations, some of the mining companies have undertaken mining projects across the region. And some of these mining projects drives the economies of the nations’ towards integration. However, not every mining industry within the sub-Saharan region generates a significant revenue to the government.

This can be attributed to the significant battle of competition between the legal miners and informal miners. Because of its low barriers to entry, millions of poor people in rural Africa are engaged with unsophisticated methods of mining in Nigeria. This causes a major drawback to multinational corporations who wish to exploit solid minerals within the sub-Saharan region (Banchirigah & Hilson, 2009; Hilson & Hilson, 2015; “Sub-Saharan Africa,” 2012)

The consensus in legitimizing the dynamics of informal artisanal and small-scale mining has been in the mainstream in every dialogue towards formalization of artisanal and small-scale mining. Although it had been witnessed that most of informal or illegal ASM operate with a crude method combining low technological mineral processing and extraction, significantly, they contribute to the country’s economy (Siegel & Veiga, 2009; Geenen, 2012; Hentschel, 2002). In the case of sub-Saharan Africa, most of the governments aim to create a more productive and institutionalized artisanal and small-scale mining. There has been several discussions between the policymakers and donor agencies to make a groundbreaking change; however, it is indispensable that most of the changes would be met with resistance (Goumandakoye & Hilson, 2016).

In some aspect, countless of people who are considerably poor and unemployed, find this industry alluring, promising a better life. It has been known that ASM is largely poverty driven, promising hope and employment to thousands of individuals or even the entire community that seek a considerable way to survive. Moreover, in response to the markets demand for gold and commodity prices, thousands to millions of miners are significantly increasing every year, this is according to statistics (Goumandakoye & Hilson, 2016; Institute, 2012; Siegel & Veiga, 2009). Thus, with the rapid growth of population involved in ASM, constraints and challenges outgrow towards the development of mining industry. Moreover, in some cases, the increase of illegal or illicit mining activities threatens the industry (Goumandakoye & Hilson, 2016; Institute, 2012; Banchirigah & Hilson, 2010).

There is a broad range of opportunities for investments related to the solid mineral sector, and the commercial quantities that are possible for investments. These are iron ore, gold, bitumen, lead zinc, barite, and bentonite, coal, limestone, rock salt, gypsum, gemstones, kaolin and tantalite (“Nigeria Investment Promotion Commission – Solid Minerals”, 2016). These minerals are exploited within the regions of Nigeria. However, despite the recognizable size of solid minerals in the market of Nigeria, its contribution to the country’s revenue is substantially low. Having a 34 percent contribution to GDP, it produces relatively low opportunities (NigerianNation.com, 2016). This is the result of most mine productions and exports are unrecorded and the high prevalence of illegal mining operations done by most artisanal and small-scale mining. According to Dr. Fayemi, Minister of Solid Mineral Development, there is a need to formalize and responsible action towards artisanal and small-scale mining in Nigeria:

“to do that. However, there must be formalized activities of the artisanal miners, repair moribund infrastructure and provide more respectable geosciences data.” (NigerianNation.com, 2016).

It is highlighted in most literature that the existence and the tenacity of unlicensed artisanal miners are evidently dominating. Thus, the growing attraction of scholar’s attention in debating and discussing its modernist viewpoint over the legalization of ASM in the country had subsequently continued over the decades. There have been explanations of dualism and legalism which assume the dichotomy between the formal and informal mining sector in the economy. Moreover, it attempts to explain the persistence of ASM across rural Nigeria is almost a paradigm of uncertain development that prevents the legalization of the sector’s activities in the country (Goumandakoye & Hilson, 2016; Verbrugge, Besmanos, & Buxton, 2014; Rivers & Amankwah, 2003).

To fully understand the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria, the researcher will be using the PESTEL analysis as a theoretical framework.

2.2       Theoretical Framework

To understand the challenges faced by the artisanal and small-scale mining in Nigeria, the researcher will be using the PESTEL framework. This framework is important in linking the challenges faced by the artisanal and small-scale industry in difficult operating environments and what role can the Nigerian Government play in alleviating the challenges.

Figure 1. PESTLE Framework

Source: Porter (1980)

The diagram above shows various factors as impacting the artisanal and ASM mining in Nigeria. Though the model is often associated with marketing (Academy, 2016; Bush, 2016), and other related fields, the researcher argues that it be ideal for use in this research because of the uncertainty, challenges, and risk associated with small-scale mining environment in Nigeria. Though these challenges could be looked at from the perspective of the artisanal and ASM mining, they can also be looked at from the external environment aspect as the success and challenges faced by these organisations rests in their adaptability to the external environment. As this environment is out of the control of the artisanal and ASM mining businesses, it is the role of the government to mitigate such challenges through stabilizing the political, economic, social and legal environments as well as providing technological training and prepare for these organisations to be competitive. Hence using, the PESTEL approach as an analysis tool helps to consider any potential risk or issues faced by these businesses. The different factors of the framework are discussed in light of the efforts towards formalization of Artisanal and Small-Scale Mining in Nigeria.

• Political

Political factors play an important role in influencing business practices. These factors identify where the government should intervene in society and the economy to maintain fair and well-being. It provides a balance between systems of control and the free market  (Academy, 2016; Bush, 2016). It is related to the stability of the country’s political system, international relationships, and subsidies that could be made available by the government towards artisanal and ASMs. Though the political environment has the potential to change as the government changes, the stability of this factor should correspond to changes in the policies and priorities that may be introduced by a new government and also compatible to existing initiatives (Academy, 2016; Bush, 2016; Cadle et al., 2010).

In the case of Nigerian mining industry, there had been questions raised about the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria. Politically, the researcher aims to identify to what extent does the government extends its action towards the needs of the ASM in Nigerian mining industry.

• Economic Factors

The economic factors are the ones that identify the general state of the economy, goods, services and money. Significantly, it has an impact on the organization and or the business more-so for artisanal and ASM mining businesses. Macroeconomic factors deal with the demand within the industry in any given economy. These may include supply and demand for a certain product, taxes, interest rates and inflation rates (Academy, 2016; Bush, 2016). They also have a significant influence on the structure of the industry. The survival of artisanal and ASM mining businesses to a large degree depends on the actions or behavior of buyers and suppliers within their economic sphere. Any undue alliances or collusions will have a serious impact on the viability, prices and profitability of artisanal and ASM enterprises.

Within Nigerian economic perspective, specifically relating to the mining industry, it is witnessed that the contribution of the mining industry to Nigerian market is relatively low. As a result of illegal mining and exploiting of solid minerals (NigerianNation, 2016). Therefore, the need to formalize artisanally and small-scale mining in Nigeria must be taken into action as they could potentially form an important contributor to the country’s economy.

Moreover, as witnessed today, the industry is in thirst of development and a more sustainable mining industry, specifically legalizing the artisanal and small-scale mining. It is known that necessary capital and finance is a big problem to most of the miners, considerably the artisanal and small-scale miners. Without adequate funding, most of the possible developments will be impossible to attain. If there is a provision either short or long finance can be attractive to investors; local or foreign. However, the discouraged ASM continues to organize illegal trade (Adefulu, 2010; Gyang et al., 2010; Hentschel et al., 2002).

The development of the solid mineral sector in Nigeria is slow despite the several attempts made by the government to ensure rapid development in the industry. There had been several researchers that had contemplated same factors and reasons why the industry is declining. This includes huge financial inadequacy. Setting up of conventional mining sector; includes informal ASM, is one of the factors influencing the development of mining sector. Moreover, local banks are reluctant to give loan facilities, in cases the bank allows loan, the interest rates are always high (Oladunjoye & Okonkwo, 2015).

In another aspect, the economic situation in many countries is geared for large enterprises. Access to loans and credit drives businesses; because of their smallness, artisanal and ASM’s suffer for not having collateral to enable them to get credit lines. This puts them at a disadvantage hence the government should make efforts to alleviate their plight.

Banks had been reluctant to finance the ASM industry and according to NEXIM bank had the critical issue is how to get the Government and other stakeholders to structure the mining sector properly, increase funding, and attract investment capital. Thus, the need for developed infrastructure to establish internationally certified laboratories and internationally recognized and endorsed mining calendar for Nigeria should have a dedicated attention (Collins & Lawson, 2014).

Even though there had been numbers of donors including World Bank, AUSAID, USAID and GIZ, and other various members of NGO in the community had agreed that one of the main challenges that ASM faces is a lack of access to formal credit market that would allow for financing in the development of technology and infrastructure. Because of lack of financial support, the informal and sometimes illegal sector continues the raw method in mining, thus, selling the minerals outside the legal context (Collins & Lawson, 2014; Oladunjoye & Okonkwo, 2015; Gyang et al., 2010).

The government needs to provide focus on financing ASM for the formalization of the industry. Thus the government needs to understand the situation will play a major role in repositioning Artisanal and Small-scale mining in Nigeria. According to Olaniyan Zacheus Opafunso (Federal University of Technology, Akure or FUTA):

“There should be an all-inclusive review of Nigeria’s mining laws. Before the Minerals and Mining Decree of 1999, all mining activities were guided by the Minerals Act of 1946. This Act affected ASM, as the whole mining sector was stifled.”

“Even when it is reasonable to secure loans and financing from banks, interest rates are usually too high for small-scale miners. It is, therefore, vital that government should provide access to the much-needed funds in the form of short and long term loans at affordable and competitive payback rates,”

An intensive review in Mining Act and setting up a programme or a sector that would provide incentives to a financial institution to fund the small-scale mining will create a substantial change in the industry (“Nigeria: The Mining Indaba Conference”, 2016; Oguh, 2016).

Within this approach, the researcher aims to identify the severity or the degree of mining industry’s economic drawback caused by illegal or informal artisanal and small-scale miners in Nigeria and how the government can play a role in formalizing these businesses. Through this, the researcher aims to identify the efforts made by the government to ensure or to sustain the small-scale mining.

• Social Factors

These are also known as the shared beliefs, demographics and attitudes of the population. They include factors such as consumer lifestyle, social classes, immigration and emigration, family size, education levels, age distribution and health consciousness (Academy, 2016; Bush, 2016 Team FME, 2013).

The informal artisanal and small-scale miners in Nigeria is one of the identified problems that causes the downfall of Nigerian mining industry. Without the dynamics of formalization, these miners operate whatever they believe is acceptable. However, these beliefs cause incomparable consequences to the environment, health and even to the society. Therefore, the researcher aims to identify the degree of severity of consequences that is caused by the informal miners in Nigeria. And to what extent does the government address these issue.

• Technological Factors

In this day and age, technology and business of any nature are closely related. Technological factors can severely affect the flow of products in the market. It entails the recognition of potential technology that is available for use, for example, communication, checking product, customer or supplier information. The lack of technology in these businesses makes them less competitive hence gets exploited by buyers or sellers who have the knowledge and information on markets. It may also affect the efficiency of product and services. The role of technology in the modern world is to update and promote high-quality products (Academy, 2016; “An Overview of the PESTEL Framework”, 2015; Bush, 2016).

The lack of knowledge in adapting a more sustainable technology in every ASM operation is known to be widespread (Collins & Lawson, 2014; Gyang et al., 2010; Hentschel, 2002). In the case of illegal artisanal and small-scale miners, who are believed to be excluded from technical assistance program, continues to implement the old and raw method in mining operations. However, to have a tangible development, implementing technical strategy is highly needed. As Hetchnel once said that there is a need for: “Detailed knowledge of the cultural, social, economic and organizational context of the miners” (Hetchnel et al., 2002).

To build a developed industry, the government had been in cooperation with strong lending agencies such as World Bank, UNEP or United Nations Environmental Programmme, United Nations Developmental Programme (UNDP), the UNIDO or United Nations Industrial Developmental Organization and many other Intergovernmental agencies that helps the industry to form a well-developed economy (Aryee at al., 2003; Collins & Lawson, 2014).

Most of the sectors aim to have an efficient mining and process methods to reduce pollutant and high damage to the environment (Collins & Lawson, 2014; Kormawa, 2014). And there are also important aims that could change the industry and its entirety. The aim to conduct training and introduce new ideas by which the use of technology transfer program will achieve the aim. However, many of these activities failed because of short-term natured activities.

Although these private sector is showing its endeavor to facilitate the implementation of industrial policies in using a strong and vibrant technology, there still an underlying resistance that needs to be identified. Moreover, in some context, the very need to establish a long-term institutional and technical capacity will create a broad range of opportunities for the development of the industry. At this point, the government is still in dialogue and several discussions to have a long-term institutionalized and technical strategies (Adie, 2011; Collins & Lawson, 2014; Kormawa, 2014).

In this section, the researcher wants to determine the extent the government addresses the issue of lack of technical advancement within the mining sector in Nigeria. And to put an emphasis on the artisanal and small-scale miner’s behavior towards any technical programs set by the government.

• Environmental Factors

Environmental factors address the variables about the physical environment that we live in. Both consumers and governments penalize firms for having an adverse effect on the environment. These includes: waste disposal laws, environmental protection laws, energy consumption regulation and the population’s attitude towards the environment products (Academy, 2016; Bush, 2016).

Within the sphere of informal artisanal and small-scale mining sector, there had been numerous discussion and policy regulation to provide a more cautioned and safe environment for the community. However, with illegitimate mining sector and the neglect of the probable environmental hazards can pose a threat to the entire community. Understanding the method of informal ASM, they operate using a crude method and if unsupervised mining, dredging, and sluicing can cause severe land degradation and river siltation.  Considering what had happened to Jos Plateau, the landscape was left by a large devastation and according to the discovery of Gyang et.al (2010), there had been 75 deaths of ponds that were recorded within the period of 1a 999 to 2008. If this continues without rehabilitation programme, the more the country will be threatened with ill consequences, socially and economically. Although there were programmes implemented to create a safe zone and hazard free mining; one example was the South African government had donated wet milling machines. But, the prevalence of unsafe practices continues to expose the miners and their families and the community, as of today, is subsequently uncontrollable (Goldman et al., 2014; Gyang et.al, 2010; Hetchnel et al., 2002).

It is evident that Nigeria faces environmental problems caused by informal and unsophisticated mining procedures (Collins & Lawson, 2014; Kormawa, 2014). Because of these informal mining procedures, this causes major threats not only to the environment but also to the health of miners and the entire community within the involved mining area (Goldman et al., 2014; Gyang et al., 2010; OK International, 2016).

• Legal Factors

Legal factors involve the identification of laws and regulations within the region. It focuses on the influence that the law may have on any organization operation and customer behavior. The legal factors are distinctively different from political factors; the latter identifies the government intervention in society and economy to create growth. Legally, the Nigerian government faces struggles with the formalization of artisanal and small-scale mining. Most of the artisanal and small-scale miners stayed informal due to their resistance to the laid legal and fiscal frameworks (Gyang et al., 2010; Hentschel et al., 2002). The researcher aims to identify to what extent is the inadequacy of legal and fiscal frameworks in solid mineral mining act. And what are the efforts made by the government addressing the issue?

The PESTLE framework has presented some of the factors that present challenges to artisanal and ASM mining initiatives. Understanding these factors is important for the government as it enables them to find ways of assisting these firms. In addition to the above information, other factors that are worth discussing in the context of artisanal and ASM mining companies.

• Level of Development

The oil industry in Nigeria increases substantially every year, from 5 million USD to 70 million USD. However, there had been less movement within the Nigerian’s mining sector in gaining revenue to the government. According to Chete et al., (2012), they had viewed that the structure of Nigerian economy is “typical of underdeveloped country”. The oil industry may have been the economic revenue driver; with its export earnings accounting over 95 percent and 85 percent of government earnings between 2011 to 2012, and still increasing in years. This is in contrast to the mineral and mining industry in Nigeria; accounting 6-9 percent in economic activity and 4 percent of GDP in 2011 (Chete et al., 2012; Melodi & Opafunso, 2014; Ogunlade, 2016).

The said contribution does not depend only on mechanized mining production but also by artisanal and small-scale miners. They may have considerably used an unsophisticated equipment and machinery or even handheld equipment. Still, the definition of small scale mining operation significantly affects the majority of industry’s revenue (Collins & Lawson, 2014; Geenen, 2012; Gyang et al., 2010; Hentschel, 2002; Oladunjoye & Okonkwo, 2015; Siegel & Veiga, 2009).

Large-scale mining is found to be more contributing to the industry and that also with artisanal and small-scale miners, may it be positively or negatively.  About 100 million people that depend on artisanal mining – workers and their families – and the thought of informal ASM could generally result in low productivity, thus will affect the contribution to the country’s economy. Stakeholders may have assumed that ASM in Nigeria is underdeveloped due to the country’s dependence on the oil industry. With the attempt of the different sector in rejuvenating Nigerian solid mineral industry still could not be holistically achieved because of the lack of established degree of programs. (Goumandakoye & Hilson, 2016; Levin, 2013; Adebayo, 2015).

• Constraints

Resistance is often experienced in every development, as it is in mining industry worldwide is undergoing an unparalleled change; this includes high instability of commodity prices and the increasing exploration costs. Nigeria has a huge potential with respect to mineral reserves exploration and production. However, as it is witnessed, the industry is still struggling to survive.  In this part of the discussion, the researcher aims to identify the challenges that the government faces towards the development of formalization of artisanal and small-scale mining in Nigeria.

• Inadequacy in Legal Frameworks and its awareness

There had been attempts to formalize and regulate ASM in different countries. In 1990’s several countries in sub-Saharan Africa had sought to formalize ASM sectors by formalizing legislation and regulatory frameworks that required artisanal and small-scale miners to have license and permits to operate. The first country to attempt regularization of ASM was Ghana, implementing Gold Mining Law 1989. In mid-1990 other 36 African countries had sought to legalize ASM. However, the majority of sub-Saharan lacks specific ASM legislation or legislation that is too broad in scope and does not address the indistinctive of ASM. (Collins & Lawson, 2014).

Generally, the informal sector is a part of ASM sector. There were legal frameworks that are usually neglected by the latter. Such as the possession of mining title (concession and claim) or a valid contact with a witness or concession holder. The conformity of the environmental legislation; the possession of an environmental operation license; the registration of the company at the mining authority or other fiscal authorities and the payment of taxes like royalties. Also, the enrolment of the employees at the national social security system. Lastly, the legal exportation of the products which involves export license and export tax (Collins & Lawson, 2014; Hentschel et al., 2002).

The government does not have means to control the compliance of the laws or do not want to recognize the ASM undertakings. The individual reasons are lack of knowledge of the legal requirements; local traditional and cultural behaviors; low incentives of the government to operate legally; and high tax burden. Other reasons are limited access to mining titles; demanding bureaucratic procedures to gain and remain formal operation, and limited danger of sanctions in combinations with the possibilities to evade the imposition of the law by corruption. Moreover, the informality of ASM has several adverse effects on the social, environmental and fiscal regimes (Gyang et al., 2010; Hentschel et al., 2002).

In addition, there is a need for adequate tax mobilization and effort in monitoring the Nigeria’s mining industry to generate revenue. Thus, the need to provide a definition of the imposed tax to the industry must be clear and well-defined and transparent. With this effort, dialogue over the underrated imposed tax will bthe e lifted. As it was clearly defined by Executive Director of CISLAC, Mr. Auwal Ibrahim Musa (Rafsanjani), harnessing the sector properly will contribute positively to the economy. “However, he expressed regret,  which Nigerians were unmindful of the tax policy and process being followed by the government to proliferate revenue from the sector. He noted that as an outcome of tax escapes and illegal mining, the nation lost the untold amount of money to crook miners” (“Tax Inconsistency Threatens Mining Revenue- CISLAC – Economic Confidential,” 2014).

In another context, most of the researches had contemplated factors that contribute to poor performance of artisanal and small-scale mining sector within the industry. It has been identified that lack of simple and transparency in legal and fiscal frameworks deliberately contributes to the latter. There had been questions if the regulations and administrative procedures are too complex and bureaucratic. In some studies, it was pointed out that most people involved in ASM complain that most laws are excessively complicated; the probability that causes fewer miners opted for a legalized ASM is because mining license can be expensive. Therefore, it is not common to see several miners are registered unlicensed and utilizing the same service than those with the license. This why, the government in different regions of Sub-Saharan Africa, assumes a strict dichotomy between formal and informal artisanal small-scale mining (Goumandakoye & Hilson, 2016).

However, as outlined in Mining Code; Article 86 states that the licensees must pay value added tax of 3 percent and must pay additional 2.5 percent for product value. Thus with the series of fees and payments in obtaining Artisanal Mining Permit can be a burden and could cause discouragement to any future license holder. To continue the issue of bureaucracy, there had been complaints that are applying and paying for permits, has been their biggest struggle. This is why most of the individuals who are engaged in mining are subsequently avoiding the licensing or being part of legitimized ASM, and most of them criticize the government’s structural policy in the formalization of artisanal and small-scale mining. These struggles are about who has the right to access. However, it is the only subsurface. In result, several artisanal miners who do not have a license to operate avoids government personnel (Adefulu, 2010; Goumandakoye & Hilson, 2016).

Another probability that hinders the development of ASM in Nigeria is the lack of political will especially financial assistance in sustaining and developing a more institutionalized, technical and productive artisanal and small-scale mining sector. To address the issue, the government’s political will legitimize the sector are often built with inadequacy. Moreover, in some cases, the possibility of personal interest and corruption, illegal activities that is enabled by informal sector is an effect of the government’s lack of political will to create a more institutionalized and enabling framework. For example; in a critique’s view, if policies are placed inadequately, and minerals are sold on the market illegally, this could emanate a substantial loss in revenue to the country. The possibility that the mineral is illegally sold may have undergone unrecorded because of personal interest or for money laundering (Goldman et al., 2014; Gyang et al., 2010; Hentschel, 2002).

According to Hentschel; he had derived main tasks of government in artisanal and small-scale mining sector, primarily management of the exploitation of the national mineral resources in a socially acceptable, environmentally sound and sustainable manner. But what is witnessed today, there had been several environmental, health and social issues that have been affecting every community, involved in artisanal and small-scale mining sector (Hentschel, 2002; Adefulu, 2010).

Lack of Technology and Machinery

The definition of artisanal and small-scale mining includes the use of low technology or unsophisticated machinery (Collins & Lawson, 2014; Geenen, 2012; Gyang et al., 2010). With the “push-pull factors” – push/ drivers: poverty, conflict, natural disaster or economic crisis and pull factors: potential for high profit – that attracts people to ASM, also increases absence of machinery. As it is well defined by Fraser Institute (2012), ASM associated with poverty uses minimal machinery or technology and sometimes relies on simple techniques and physical labour through handheld equipment.

Nigeria relies heavily on foreign nations for innumerable technology advancements and industrial needs. As it is witnessed today, the country’s development is wholly low regarding technological productivity (Gyang et al., 2010; Uwaifo & Uddin, 2009). Moreover, according to Uwaifo & Uddin, there is a “technological backwardness” within the criteria of mining. Thus, Nigeria reveals all points as a technologically backward country; the country could not produce big machineries like tractors and drilling machines. Another factor is that it is unable to exploit the natural resources without the help of foreigners – including informal ASM, involved in illegal exploitation. It exports raw materials to other countries and lastly, it is unable to produce a military hardware for any possibilities of protecting its natural resources (Uwaifo & Uddin, 2009).

To have a developed industry, the government needs to focus on providing a technological advancement and programmes. Having modernized technology in extracting and manufacturing solid minerals would increase high-grade minerals than the mow grade ones.

“Nigeria has several high-grade gold mines but with modern technology w,e could also work the low-grade mines, thus significantly increasing the country’s mining potential,” Steven Dattal, a financier and former CFO of Barrick Gold (“Mining in Nigerian,” n.d.).

• Illegal Mining

The term of ASM is often referred to mining operation outside legal and structural frameworks. It involves individuals, groups or communities that are often informally or illegally (Lowe 2005; Fraser Institute, 2012; Goumandakoye, & Hilson, 2016). Moreover, the result of an increasing population involved in ASM; illegal or illicit mining activities are relatively increasing. If the considerable analysis is undertaken; minerals such as lead, zinc or deposits, tin gold, and others, will be exploited without formality and legality, this will cause a major drawback to the country’s economy.

A recent revelation by the Permanent Secretary, Ministry of Mines and Steel Development, Mr. Linus Awute, that the effect of illegal mining and exploration and unrecorded gold in the last two years had gone up to N8 trillion. This had caused not only a great revenue loss but also countless people that had been affected by lead poisoning and other contaminants resulting from illegal mining (“Nigeria and Illegal Mining « The Pointer News Online”, 2016).

The increasingly dominating illegal mining would cause risks to the public by which child labor and human rights may be abused. According to a mining expert Mr. Abbi Buxton of International Institute for Environmental Development (IIED) observation.

Government development agencies and the private sector have tended to overlook small-scale mining, seeing it as a source of the problem that should not exist. He said that “this neglect has to end, especially since the demand for mineral resources continues to grow.” Therefore, the very need to investigate and create a law in punishing illegal miners will contribute a meaningful growth in the mining industry. (The Pointer News Online,” 2016).

• Adequacy of Government Effort
  • Policies and Legal Frameworks

In the recent dialogue, policies and the fiscal frameworks show inadequacy. There had been issues on how the government handles the formalization of ASM. Thus, the challenges that the government faces are yet to be handled properly. The hopes of boosting and rejuvenating the industry by attracting foreign investments had led the government to led to review its policies. One best example is reviewing Custom Code, Taxation Code and Labour Code (Adefulu 2010ARAB, 2007)

Moreover, the government had attempted to modernize the banking system by starting a fiscal program and monetary management by which the government aims to develop a mechanism. It is an undergoing political transformation in an attempt to have a meaningful economic reform. Furthermore, the Federal Ministry of Solid Minerals Development is developing strategic properties and advancing the role of solid minerals in the Nigerian’s economy. The government had identified 44 known minerals by which they had listed it as an asset and had updated their geoscience data. As it has historically seen the potential of the industrial growth; Steve Vaughn, a partner at Heenan Blaikie Business Law Group and a leading expert on international mining law, had stated: “Enough attention as other countries in the region did from investors, but that is changing now.” However, the focus is not the entire region of Nigeria; some articles had viewed that the sustainable development one cannot be drawn to happenings in most of Nigeria. The government should focus not only on one region but also other parts to defer the development of the industry and provide the investors a safe haven to operate in (Fayemi, 2015; NIPC GOV, 2016; “Nigeria: The Mining Indaba Conference”, 2016).

 

• Formalization of Artisanal and Small-Scale Mining

Conceptualizing an informal ASM activity, it is often unpredictable. Though ASM serves as important as large-scale mining activities and plays a major role in alleviating poverty in some rural areas, it is still one of the causes of the major drawback of the mining industry. Most people who serve in the industry are part of the poor sector, hoping for a better future. ASM may be considered as informal and works outside legal and structural economies; it is still vital to the economic growth, may it be formal or informal ASM (Banchirigah & Hilson, 2010; Institute, 2012; Gyang et al., 2010).

Thus, constituting a formalized ASM will enhance the country’s social and economic well-being or may establish fair governance to the ASM sectors. However, there are times; the meaning of Formalization of ASM is vague.          Following what De Soto had theorized, ASM can be termed as “extralegality,” wherein formalization is about absorbing existing customary practices that were developed informally by the miners into the mainstream of the country’s legal and economic affairs (Siegel & Veiga, 2009).

In another aspect, small-scale miners often associated with artisanal miners, and developing SSM is crucial but also plays a major role in a growing sector, however, small-scale mining is differently distinguished by artisanal because of the presence of permanent and fixed operations; once the presence of an ore mineral is confirmed. Moreover, a solid mineral sector in Nigeria is dominated by these operators. With huge small-scale miners that are untrained, there is a tremendous contribution to environmental degradation and poor operational quality that causes loss of minerals and precious stones. Thus, it is important to identify a strategy towards a more productive and developed sector (Hetchnel et al., 2002; Lawal, 2001; “Mining Scoping Study Report,” 2016).

However, there had been issues that there are no identified policies that would directly associate SSM in Nigeria. Thus there is unsystematic structure Nigerian policies with its mining sector. But, on a brighter side, a presidential committee has been inaugurated known as “Accelerated Development of Nigeria’s Solid Mineral Potentials,” with its aim to eliminate or minimize substantially the operations of illegal mining. Alongside with this committee, the establishment of the Small-Scale Mining Credit Guarantee Scheme was created to aid the SSM in Nigeria with Olusegun Obasanjo (President of the Federal Republic of Nigeria) approval (Hetchnel et al., 2002; Lawal, 2001).

In some issue, the SSM are very reluctant to accept the idea of cooperatives because of its unachievable form in the application. The main purpose of cooperatives is to provide an economic stability and provide a framework for local investments. Therefore, in some aspect, since the development of a more productive sector is intangible due to low funding and low technical knowledge make the SSM miners susceptible to illegal activities (Goldman et al., 2014; Nwankwo et al., 2012).

Therefore, ASM if not formalized, most involved in this industry are the criminals, opportunistic, women, children, the marginalized and subsistence. This sector embraces an extreme poverty and vulnerability that may lead to social problems.  A case study was done by Echavarria, on efforts in formalizing artisanal and small-scale mining in Colombia; highlighting the persistence of informality within the sector. Despite all the formalization efforts – over 26 years and 27 separate laws and amendments laid by every successive government; out of 72% all mining operations, 63% are informal (Echavarria, 2014). What could have gone wrong?

In the case of ASM in Nigeria; the government, together with the other sectors, had conceptualized and established legal, fiscal and regulatory frameworks that could help build up the mining industry. In 1995, Federal Ministry of Solid Minerals and Development, which today is known as Ministry of Mines and Steel Development, was created to formulate policies, provide information on mining potential and production operation and potentially could generate revenue. Moreover, there are several revisions and amended mining laws and policies in the formalization of Artisanal and small-scale policies; however, informal ASM is still dominating in the industry (Lawal, 2001).

• Small-Scale Mining

In another aspect, small-scale miners often associated with artisanal miners, and developing SSM is crucial but also plays a major role in a growing sector, however, small-scale mining is differently distinguished by artisanal because of the presence of permanent and fixed operations; once the presence of an ore mineral is confirmed. Moreover, a solid mineral sector in Nigeria is dominated by these operators. With huge small-scale miners that are untrained, there is the huge contribution to environmental degradation and poor operational quality that causes loss of minerals and precious stones. Thus, it is important to identify a strategy towards a more productive and developed sector (Hetchnel et al., 2002; Lawal, 2001; “Mining Scoping Study Report,” 2016).

However, there had been issues that there are no identified policies that would directly associate SSM in Nigeria. Thus there is unsystematic structure Nigerian policies with its mining sector. But on a brighter side, a presidential committee has been inaugurated known as “Accelerated Development of Nigeria’s Solid Mineral Potentials,” with its aim to eliminate or minimize substantially the operations of illegal mining. Alongside with this committee, the establishment of the Small-Scale Mining Credit Guarantee Scheme was created to aid the SSM in Nigeria with Olusegun Obasanjo (President of the Federal Republic of Nigeria) approval (Hetchnel et al., 2002; Lawal, 2001).

In some issue, the SSM are very reluctant to accept the idea of cooperatives because of its unachievable form in the application. The main purpose of cooperatives is to provide an economic stability and provide a framework for local investments (Goldman et al., 2014; Nwankwo et al., 2012). Therefore, in some aspect, since the development of a more productive sector is intangible due to low funding and low technical knowledge make the SSM miners susceptible to illegal activities.

Since there is no large-scale mining operation in Nigeria, ASM is sought to pull the mining industry from its downfall. Considering that most of the mining activities, accounting 90 percent, are coming from small-scale miners; this will considerably help rejuvenate the industry. However, most of the accounted activities are recorded and regulated by Artisanal and Small-Scale Administration (ASMD). Thus the attempt in providing priority to small-scale mining appeared to be inadequate.  Therefore, if the Federal Ministry of Solid Minerals Development will establish an association or department that would solely take charge separately with SSM and Artisanal Miners and provide adequate separate attention, henceforth will result in a positive outcome. As a whole, ASM department is to improve the sustainable livelihood in ASM communities. (Berger, 2015; Lawal, 2001; “Nigerian Mining Sector”, 2012).

Health Impact           

Regarding health issues; exposure to mercury or lead may not be noticeable and considered as asymptomatic, in the long run, the possibility of immunotoxic/autoimmune effects that came from mercury would easily incur. The possibility of uncontrollable and incurable disease and worst death threatens an individual involved in ASM sector. In the absence or the lack of will to provide and finance miners or the state with an adequate infrastructure such as health clinics and technological adequacy can be reflected with the state of their living. One example; the prevalence of lead poisoning within the mining community is considerably uncontrollable. Without proper knowledge and implementation of programmes towards safety mining, the existence outbreaks, the death of children and the long-term consequences brought by lead poisoning will never decrease. Mining or gold mining is considered as an economic necessity in poor regions of Nigeria, additionally if without other employment diversity the community will continue to operate within unsafe mining zone. Thus, the government must be proactive towards safe techniques, rehabilitation and immediate action in response to a safer mining (“Environmental Impacts of Mining and Smelting | Occupational Knowledge International”, 2016; Goldman et al., 2014; Gyang et al., 2010).

Lease and Land Titles

Another inadequacy that hinders the development of pursuing ASM to become formalized is the demands of land title requests. According to Musa Sada, (2015) the Mining Cadastre Office (MCO) is flooded with speculator that discouraged genuine local and foreign investments due to the reform exercise in revalidation of all the known mining titles/rights. Moreover, miners who are interested in applying for land title requests are not guaranteed to be registered in timely assessment. As miners reiterated, at the ministry level where they find the biggest problems, they put down requests for permits since 2012 and even paid but until now there has no response yet from the ministry. [Interview, artisanal miner, M’Banga] (Goumandakoye, & Hilson, 2016).

Obtaining an Artisanal and Small-Scale Mining Permit in Nigeria is troublesome for those interested or prospective license holder. It takes several months to get the ‘permit given’ status and is often requires additional payment to use the permit. Although there had been the establishment of Cadastre had started in 1883 to regulate the structure and patterns of land ownership, yet the problem in the management has increased over the years. (Goumandakoye, & Hilson, 2016; Sada, 2015; Usman, 2010).

The next chapter will discuss the methods that will be used to gather significant data(s) and will extend the use of PESTLE analysis on the level of understanding the efforts made by the government towards the formalization of artisanal and small-scale mining in Nigeria.

search is based on some underlying philosophical assumptions about what institutes an ‘acceptable’ research. Research method(s) is/are appropriate for the development of knowledge in a given study. And this chapter examines the research methodology adopted in thesis and discusses the philosophical assumptions and the use of the design strategies underpinning this research study; discussing the researcher’s positivist and interpretative stance to research and the consequent choice of quantitative approach. The next part of this paper will discuss the research methodologies, and research design used in the study including strategies, instruments, and data collection and analysis methods, while explaining the stages and process involved in the study.

3.2. Research objectives, questions and aim

The researcher’s objectives are: (i) To evaluate the stability of the Government’s strategy towards a long-term institutionalized and technical mining industry. (ii) To evaluate the efficiency of the Government’s sustainable management provided for artisanal and small-scale miners.

And seeks to answer the succeeding research question(s): (1) To what extent is the Government’s strategy stable for a long-term institutionalized and technical mining industry? (2) To what extent can the Government efficiently achieve a sustainable management for the artisanal and small-scale miners? The researcher aim (s) to investigate what effort has the government made toward the formalization of ASM.

 

3.3 Importance of the Research

The significance of the study is mainly to put emphasis on what efforts have the Government made towards the Formalization of artisanal and small-scale mining in Nigeria. Despite several revisions of the laid laws and policies, it is evident that the industry is continuously depleting. With these, the government will be cautious and knowledgeable what better actions will be taken to place an improvement.

3.4 Research Philosophy

Research philosophy is the development of research background, research knowledge and its type of nature. It is also the development of logical reasoning that integrates current ideas with its previous established methods of thoughts through a structural phase. It also describes the perceptions, beliefs, assumptions and the nature of reality and truth. It also influences the research structures; from research design to conclusion (Blaikie, 2000; Flowers, 2009; James, 2002; Trochim, 2006).

There are mainly two research philosophies; these are discussed below:

3.4.1    Interpretivism

            An interpretive researcher contends that the reality consists of people’s subjective experiences of the external world. Therefore, every intervention in the real world can only be understood through subjective interpretation. Interpretivism is usually associated with philosophical idealism and it is used to group the diverse approaches. Following Reeves and Hedberg (2003) citation, the approach stresses that there is a need to put analysis in context. It is also concerned with understanding that the world or reality comes from subjective experiences of individuals. It uses the quality of meaning of the oriented methodology; which includes interviewing or using participant’s observation that relies on the subjective relationship between the participants and the subjects (Edirisingha, 2012; Dudovskiy, 2016; Reeves & Hedberg, 2003).

In research comparison; interpretivist is known as interactive and inseparable. Positivism, on the other hand, must remain separate to limit observer bias.

3.4.2 Positivism

            The positivist believes that the world is external and that in reality there is one objective to any research situation regardless of the researcher’s belief or perspective (Edirisingha, 2012). It is an “epistemological position”; believing that the goal of knowledge is to identify or describe the situation whatever people experiences.  It is the philosophical position which emphasizes and empirical data and scientific methods. Traditionally, it consists world of regularities, which by far, are detectable. Thereof, the researcher can conclude knowledge about the real world through observation. Positivist researcher aims to seek objectivity and the use of consistent, rational and logical approaches to research. The goal of positivist researches is to make time and milieu of free generalization (Edirisingha, 2012; Jakobsen, 2013; Lia Aston, 2005).

In positivistic approach, it explores the social reality based on philosophical ideas. Within the views of French philosopher August Comte, true knowledge is based on the experience of senses, and that can be obtained through observation and experiment. And, most of the positivistic thinkers adopt Compte’s scientific method as a means of knowledge generation. Moreover, the researchers remain detached from the participants to remain neutral and make a distinction between feelings and reasons, including between science and personal experience. The positivist approach aims to have consistent, rational and logical results (Edirisingha, 2012; Jakobsen, 2013; Lia Aston, 2005).

 

3.4.2 Discussion and Rationale for Choice of Approach

The researcher will use the positivist approach in this study. By which the central principle of the approach is to take a ‘scientific’ perspective when observing the social behavior with a possible objective analysis. The researcher believes that adopting the positivist approach, will explain the people’s action by the social norms. Moreover, following Auguste Comte’s view of positivism; it represents a substantive part of the larger historical project of reflection, interpretation, and understanding.  Positivist focuses on how to uncover the laws that govern human behavior. To have a clear understanding of the norms of Nigerian mining activities and the efforts made by the government towards the formalization of artisanal and small-scale miners, the researcher will apply positivism approach. The data(s) that will stem out from the survey (quantifiable) will be interpreted by objective standpoint. Objectively, the researcher aims to uncover the causes, social trend and the relationship between formalization of artisanal and small-scale miners and the industrial standing within Nigeria’s economy. Moreover, using a quantifiable observation, the researcher aims to discover and understand the individual(s) / group(s) that adopts and or resists the idea of formalization of artisanal and small-scale mining in Nigeria (Nudzor, 2009; ReviseSociology, 2015; Scharff, 2003; Weber, 2004).

3.5. Research design

            To achieve the objectives of the study, quantitative approach design will be utilized. The researcher believes that using quantitative research will address the social trends, causes or correlation between two or more variables. The quantitative approach is a theory of validation procedure and it is believed that its research process is cyclic in nature. Moreover, the goal of conducting quantitative research is to determine the relationship between variables within a population. It deals with mathematical or scientific data to understand problem; analyzing surveys and providing detailed and objective stance (Nenty, 2009; Peer, 2016; USC Libraries, 2010)

3.5.1 Advantages of a Quantitative Approach

Most of the market researchers often rely on quantitative approach; it understands the strength and limitations of any research approach. It provides a measure of how the people think, feel and or behave and uses statistical analysis to determine the results. In advantageous stance, quantitative approach is more reliable and objective. It can generalize research findings when the data are based on random samples of sufficient size. It often reduces and restructures a complex problem to a limited number of variables by which the researcher may construct a situation that will eradicate any confounding elements influencing many variables by allowing one or more credible established “cause and effect” relationship. Using a quantitative method – compiling statistics, opinion surveys, and questionnaires – it provides precise, quantitative, numerical data. Moreover, the subjective analysis in methodology is less recognized than a statistical and scientific data analysis. (DeVault, 2016; Learning, 2016; SouthAlabama Edu, 2016)

3.5.2 Disadvantages of Quantitative Approach

            The ultimate goal of quantitative approach it to calculate numerical data value(s) associated with each component of the gathered result. However, quantitative research does not study natural settings than qualitative does. In some aspect, quantitative research needs a huge sample of the population. Using this type of research, the researcher needs to find a great number of correspondents – with a larger the sample of people; the more statistically accurate results will be (Creswell, 2003; HRF, 2014; Skillsyouneed, 2016). This type of research also requires a great amount of cash. Since there is a need for a huge number of correspondents; the researcher must be financially prepared. Moreover, this type of research is at risk of bias in the form of a questionnaire. Therefore, the researcher must be detached with the correspondent to produce an accurate and unbiased result.

3.6. Research strategies

            Data collecting via quantitative technique provides clear and accurate results for a specific target population with a standardized method. Using a quantitative approach, data collection may vary to the selected strategy (DeVault, 2016; Learning, 2016; University of Surrey, 2016). This includes laboratory experiments, field experiments, surveys, case studies, theorem proof, forecasting, and simulation. In this paper, the researcher will utilize a survey questionnaire, hoping for clear and accurate results that may lead to an understandable and aggregable conclusion, related to the efforts made by the government towards formalization of artisanal and small-scale miners.

3.6.1 Survey

            Surveys enable researchers to obtain data needed for the study. It targets the population’s practices, situations and or their views through questionnaires or surveys.  It encompasses any measurement procedures that involve asking questions to the respondent. Moreover, almost all surveys offer a quick and efficient ways of collecting information (Trochim, 2006; USC Libraries, 2010; Glasow, 2005).

3.6.2 Discussion and Rationale for Choice of Strategy

            By using survey in research, this allows the researcher to study more variables at one time. Moreover, surveys have the advantage in asking questions about the precise topics that are of policy or research interest. It covers the full range of issues and variables that are identified in the research. Therefore, the researcher had decided to use the said strategy to gather the needed data. Also to identify what hinders the formalization of artisanal and small-scale mining in Nigeria and the efforts made by the government towards the formalization of the latter (Trochim, 2006; USC Libraries, 2010; Glasow, 2005).

3.7. Research instruments

Research instrument is the fact-finding strategies and or the tool to be used for data collection. Moreover, according to Parahoo (2006), it is also designed to measure knowledge, attitude, and skills. In this section, the researcher aims to discuss the instrument that will be used in data gathering.

3.7.1 Sampling Instruments

Sampling instruments are used as a measurement device, such as; survey, test, and questionnaires). It is also the process of selecting a number of study units from a defined study population. And to draw samples from a population, there is a variety of sampling method (random sampling, systematic sampling, and stratified sampling); however, the researcher will be using simple random sampling (SRS). Simple random sampling is a basic sampling technique, by which the researcher will be selecting a group of the subject for study from a larger group. The subject chosen is entirely by chance, and each member of the population has an equal chance of being included in the sample (Biddix, 2009; RGS, 2016; Tasir, 2016). With its unbiased representation of the population, the researcher will be using this method. Moreover, using SRS method, the probability of gathering a fair result is high.

3.7.2. Data collection instruments

            The researcher had identified questionnaire as an instrument for data gathering. The questionnaire is one of the normative surveys that systematically use a prepared form or document with a set of questions which are designed to gain responses from identified respondents. Moreover, in order to obtain an unbiased and accurate data, the researcher had used a structured questionnaire – a closed form questionnaire. The researcher believed that using a structured questionnaire; the respondents will be able to answer the provided questions quickly completely. With the gathered data, the researcher will be able to analyze easily, compute and interpret (Annum, 2016; Cook, 2011; Trueman, 2015)

3.7. 3 Data analysis instruments

            Data analysis is defined as “a research method for the subjective interpretation of the contents of text data through systematic classification process of coding and identifying themes and patterns” (Hsieh & Shannon, 2005). In this study, the researcher will use structured data questionnaire to collect data from different sources. As a result; the questionnaire will follow PESTEL’s hierarchy to identify, analyze and monitor the macro-environmental or external marketing environment factors that may have an impact on an organization or industry. In which it is structured as; section (1) Demographics – the statistical characteristics of the human population. Section (2) Political Environment – the analysis of both local and global politics that may have influence within an organization. Section (3) Economic Environment – generally, the state of the economy, goods, services and money of the organization. Section (4) Social-cultural environment – it is connected with general public and their behavior. Section (5) Technology environment – is related to the existence, availability, and development of technology. Section (6) Environmental – the analysis of the internal and external factors that greatly affects the business’ trade environment and the market. Section (7) Legal environment – the laws and regulated policies that greatly affects the industry or an organization.

The items contained in the questionnaires comprises multiple-choice structured questions that will identify contributing factors that hinder the economic growth, related to the mining industry in Nigeria, and the efforts made by the government towards the formalization of artisanal and small-scale miners (Academy, 2016; Bush, 2016; Woods, 2011).

3.8 Validity and Reliability

            Reliability is defined as the “repeatability” of findings. It addresses the consistency and stability of results. Meanwhile, validity is referred to how credible and believable the research is. If the data(s) are considerably valid, it must be reliable, however in some instances that some tests are reliable but is not considered as valid. Therefore, reliability of test is necessary, but not always considered as valid (UCDavis, 2016, 2016; Cortland, 2016; Golafshani, 2003)

In this study, the researcher will produce two sets of a questionnaire for; the Solid Mineral Ministry, Company owners or managers and small-scale miners in Nigeria. The researcher aims to produce reliable and stable results using the formulated questionnaires.

3. 9. Research access, limitation

Using the researcher’s network and family data will be gathered from selected people of Solid Mineral Ministry, Mining Companies and small-scale miners in Nigeria. The limitations of this research will be; (1) the data that will be gathered from the key players and respondents would entail their personal bias, (2) this research is time constrained (3) the analysis of data that will be gathered will be affected because of the personal biases of the researchers.

3. 10. Required resources

            To carry out this project task, the researcher will gather identified people, coordinate with facilities such as, mining facilities and other facilities that will help gather related significant information. There is also a need to communicate with the regional government or solid minerals and mines ministry. The researcher will gather information about any threats and hazards within the region to ensure safety amongst research and survey conductors.

3.11 Ethical considerations

Conducting research does require not only expertise and diligence but also honesty and integrity. The researcher will also exercise care that will ensure the rights of the subject and or the institution.

And the researcher will ensure the subject’s rights for animosity and their information’s confidentiality. Moreover, the researcher will provide written/oral permission before conducting the research study.

3. 12. Chapter Summary

The researcher aims (s) to investigate what effort have the government made toward the formalization of ASM. Henceforth, using a positivist approach, the researcher will use structured survey questionnaires following the research questions: (1) To what extent is the Government’s strategy stable for a long-term institutionalized and technical mining industry? (2) To what extent can the Government efficiently achieve a sustainable management for the artisanal and small-scale miners?  The researcher hopes to gather fast, however, unbiased, reliable and valid results from random respondents of the Ministry, Mining companies and small-scale miners in Nigeria.

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Questionnaire

(Federal Ministry)

Part 1. Demographic Information

1. Location of the establishment
   1. Registered name ————————
   2. Street number —————————
   3. Street name ——————————
   4. Municipality or City/Town ————-
   5. Postal Code ——————————
2. Period covered by this questionnaire

Note ·         This questionnaire must be completed from the financial year ended on any date between (indicate the date of research)

 

/             /

/             /

Indicate the period covered by this questionnaire                 From                                          To

 

Part 2.  Note: Please answer the following questions by encircling the letter choices.

1. Political

1.1 Does the Federal Ministry of Mines and Solid Minerals gather all the region’s Governors and hold a strategic meeting for the development of the mining industry in Nigeria?

1. Considerably holds a strategic meeting frequently
2. Considerably holds a strategic meeting occasionally
3. Considerably holds a strategic meeting only when problem arises

1.2 Does the regional Governors often ask for assistance in managing and sustaining the mining industry within their assigned region?

1. Considerably ask for assistance in managing and sustaining the mining industry frequently
2. Considerably ask for assistance in managing and sustaining the mining industry occasionally
3. Considerably ask for assistance in managing and sustaining the mining industry only when problem arises

1.3 Does the Federal Ministry of Mines and Solid Minerals support artisanal and small-scale miners in Nigeria?

1. Effectively supports ASM frequently together with developmental programmes
2. Effectively supports ASM occasionally together with developmental                                                                       programmes
3. Effectively supports ASM together with developmental programmes only when problem arises

1.4 Does the Federal Ministry of Mines and Solid Minerals encourages a transparent flow of revenue in response to good governance and anti-corruption campaign?

1. Provides a transparent flow and full details of revenue
2. Provides details of the flow of revenue but with restriction
3. Provides details only when needed
4. Economy

2.1 Does the Federal Ministry often record the imports and export products related to mining?

1. Effectively records the imports and export products related to mining
2. Records the imports and export products related to mining occasionally
3. Records the imports and export products related to mining only when needed

2.2 Are there tangible targets for economic development and livelihood diversification in artisanal and small-scale mining areas that will help contribute to an increase production of ASM?

1. Yes, there are tangible targets/goals
2. No, there are no tangible goals but is currently in discussion
3. There is a partial tangible goal

2.3 Does the government/Federal Ministry of Mines and Solid Minerals encourages foreign/local investors in investing within the country?

1. Yes, effectively encourages the foreign/local investors
2. No, unable to encourage the foreign/local investors
3. Encourages the foreign/local investors but with restrictions

2.4 Is the idea of establishing an inter-collaboration with mining consultants and mineral property agents to have a government-company-community relationship considerable?

1. Yes, to have a developed and enhanced mining sector inter-collaboration is considerable
2. No, it will only create chaos in the development of formalization
3. Partially, further planning will be needed
4. Social Cultures

3.1 Does the artisanal and small-scale miners shows resistance in accepting the idea of formalization or artisanal and small-scale mining in Nigeria?

1. There is a clear and transparent resistance
2. The artisanal and small-scale miners show no resistance
3. There is partial resistance within the artisanal and small-scale miners

3.2 Does the government/ Federal Ministry of Mines and Solid Minerals allow artisanal

and small-scale miners who are women and children working in the mining area?

1. Allows the women and children since there is no other source of income
2. Does not allow women and children working in mining area
3. The government/ Federal Ministry of Mines and Solid Minerals does not know that women and children are working in the area.

3.3 Can the government/ Federal Ministry of Mines, and Solid Minerals allow the use of incentives to encourage miners to form cooperatives?

1. The government/ Federal Ministry of Mines and Solid Minerals will allow the use of incentive for the miners to form cooperatives
2. The government/ Federal Ministry of Mines and Solid Minerals cannot allow the use of incentive for the miners to form cooperatives because of low funding
3. Partially able to allow the use of incentives

3.4 Can the government/ Federal Ministry of Mines, and Solid Minerals will extend its use of incentives to grant loans to miners especially ASM.

1. The government/ Federal Ministry of Mines and Solid Minerals will allow the use of incentive for the miners to grant loans
2. The government/ Federal Ministry of Mines and Solid Minerals cannot allow the use of incentive for the miners to grant loans because of low funding
3. Partially able to allow the use of incentives because of low funding

3.5 Is the idea of having a separate department for small-scale mining, and Artisanal mining is considerable?

1. Yes, it is considerable to differentiate and identify the needs of the small-scale miners and artisanal miners separately
2. No, it can only create further confusion within the mining sector
3. Partially, this needs further discussion within the government/Federal Ministry
4. Technology

            4.1 Does the government/ Federal Ministry of Mines and Solid Minerals is financially adequate in financing the technological needs of the miners?

1. Yes the government/ Federal Ministry of Mines and Solid Minerals is financially capable of financing the technological needs of the miners
2. No the government/ Federal Ministry of Mines and Solid Minerals is unable to finance the technological needs of the miners
3. The government/ Federal Ministry of Mines and Solid Minerals is partially able to finance the technological needs of the miners

4.2 If Yes, can the government/ Federal Ministry of Mines and Solid Minerals able to support a computerized registry and Mining Cadastre system in accordance with international standards?

1. The government/ Federal Ministry of Mines and Solid Minerals is able to support a computerized registry and Mining Cadastre system in accordance with international standards.
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to support a computerized registry and Mining Cadastre system in accordance with international standards because of the miner’s resistance, especially artisanal and small-scale miners
3. The government/ Federal Ministry of Mines and Solid Minerals is partially able to support a computerized registry and Mining Cadastre system in accordance with international standards because of the miner’s resistance and funding.

4.3 Can the government/ Federal Ministry of Mines, and Solid Minerals allow the use of incentives for technological transfer to enhance productivity?

1. The government/ Federal Ministry of Mines and Solid Minerals is able to extend its use of incentives for technological transfer to enhance productivity
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to extend the use of incentive due to restrictions
3. The government/ Federal Ministry of Mines and Solid Minerals is able to extend the use of incentive, however only partially.

4.4 Can the government/ Federal Ministry of Mines and Solid Minerals be able to formulate a technical training programme for artisanal and small-scale miners?

1. The government/ Federal Ministry of Mines and Solid Minerals is able to provide a technical training programme to the miners, especially artisanal and small-scale miners
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to provide a technical training programme to the miners because of resistance from the miners itself
3. The government/ Federal Ministry of Mines and Solid Minerals is partially able to provide a technical training programme to the miners due to financial inadequacy
4. Environment

            5.1 Did the government/ Federal Ministry of Mines and Solid Minerals provide a well-definition of exploration on mining in the country?

1. Yes, the government/ Federal Ministry of Mines and Solid Minerals had provided a clear definition to the foreign/local miners about mining exploration
2. No, the government/ Federal Ministry of Mines and Solid Minerals was not able to provide the clear definition to the foreign/local miners about the mining exploration because of the miner’s resistance/funding
3. Partially able to provide clear definition because of miners resistance/funding

5.2 Does the government sustain and protects the environment from further damage caused by unsophisticated mining operations.

1. The government/ Federal Ministry of Mines and Solid Minerals clears the mining area that is highly damaged by unsophisticated mining operations
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to clear the mining that is highly damaged by the unsophisticated mining operations because of the miner’s resistance, and there is no other mining site
3. The government/ Federal Ministry of Mines and Solid Minerals is partially able to clear the mining area due to the miner’s resistance, and there is no other mining site

5.3 Does the government provides programmes and training to the miners especially those who are engaged in artisanal and small-scale mining to sustain and protect environment

1. The government/ Federal Ministry of Mines and Solid Minerals provides proper training and lay programmes to sustain and protect environment
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to provide training and lay programmes to sustain and protect environment due to the miner’s resistance and low funding
3. The government/ Federal Ministry of Mines and Solid Minerals is partially able to provide training and lay programmes to sustain and protect environment due to the miner’s resistance and low

5.4 Can the government/ Federal Ministry of Mines, and Solid Minerals allow the use of incentives to sustain and protect the environment from further damage due to unsophisticated mining?

1. The government/ Federal Ministry of Mines and Solid Minerals is able to extend its use of incentives to sustain and protect environment from further damage due to unsophisticated mining
2. The government/ Federal Ministry of Mines and Solid Minerals is unable to extend to sustain and protect environment from further damage because of unsophisticated mining due to restrictions
3. The government/ Federal Ministry of Mines and Solid Minerals is able to extend the use of incentive to sustain and protect the environment from further damage due to unsophisticated mining, however only partially.
4. Legal

6.1 According to regulation, is there a clear timeframe for the allocation of licenses?

1. A clear timeframe for the allocation of licenses is prescribed by the regulations.
2. The regulation contains no clear timeframe for the allocation of licenses.
3. Partially explained

6.2 Is the information required for license applications easily accessible?

1. The required information for licensing is accessible
2. The required information for licensing is not accessible
3. The required information is partially accessible

6.3 Are the procedures for the allocation of mining rights laid out in the legal framework followed and practiced?

1. Procedures for the allocation of mining rights laid out in the legal framework are followed without exception.
2. Procedures for the allocation of mining rights are seldom or not followed
3. Partially followed due to deviation from the regulations occur or procedures are out-dated.

6.4 Is the artisanal and small-scale mining taking place under formalized procedures?

1. Artisanal and small-scale mining (ASM) operations take place under formalized procedures.
2. Most ASM operations do not take place under formalized procedures.
3. Partially are involved under formalized procedures.

Questionnaire

(Small-scale Miners)

Part 1. Demographic Information

1. Age

Age	Total
Less than 18years
18 – 30years
31 – 49years
50 + years
Total

2. Gender

Gender	Total
Female
Male
Total

 

3. Level of Education

Level of Education	Total
Tertiary
Secondary
Primary
None
Total

 

 

4. Marital Status

Marital Status	Total
Single
Married
Divorced
Widow
Total

 

 

 

 

 

 

 

 

5. Years engaged in mining activities

Years	Total
Less than a year
1 – 5years
5 – 10years
Above 10 years
Total

 

 

 

 

 

 

Part 2.Please answer the following questions by encircling the letter choices.

1. Political
   • Do you feel that the Federal Ministry of Mines and Solid Minerals altogether with your governor holds a strategic meeting for the development of the mining industry in Nigeria?
     1. Yes, I can feel that they hold strategic meeting (please explain)

• No, I do not feel that they have strategic meeting (please explain)

1. I can partially feel that they have strategic meeting (please explain)

• Do you feel that the regional governor often asks for assistance in managing and sustaining the mining industry?

1. Yes, I can feel that they are asking for assistance (please explain)
2. No, I don’t feel that they are asking for assistance (please explain)
3. I can feel that they only ask for assistance only when problem arises

• Do you feel that the Federal Ministry of Mines and Solid Minerals support small-scale miners like you?

1. Yes, I can feel that they are effectively supporting small-scale miners
2. No, I don’t feel that they are effectively supporting small-scale miners
3. I can feel their support only when problem arises

• Do you feel that the Federal Ministry encourages a transparent flow of revenue in response to good governance and anti-corruption campaign?

1. Yes, I can feel that they provide a transparent flow and full details of revenue
2. No, I feel that they provide a transparent flow of revenue, however with restrictions
3. I can feel that they provide full details only when needed
4. Economy

• Do you feel that the Federal Ministry often records the import and export products related to mining?

1. Yes, I can feel that they are effectively recording the solid minerals for import and exports
2. No, I can feel that they occasionally record these solid minerals for import and exports
3. I can feel that they are recording these import and exports only when needed

• Do you feel that the government has tangible targets for economic development and livelihood diversification in artisanal and small-scale mining areas that will help contribute to an increase production of ASM?

1. Yes, I can feel that the government has a tangible targets/goals
2. No, I don’t feel that they have tangible targets
3. I can feel that the government has partial tangible targets

• Do you think that the idea of establishing an inter-collaboration with mining consultants and mineral property agents to have a government-company-community relationship considerable?
  1. Yes, I think that to have a developed and enhanced mining sector inter-collaboration is considerable
  2. No, it will only create chaos in the development of formalization
  3. Partially, further planning will be needed
  4. Social Cultures
• Do you think that there is resistance from small-scale miners towards formalization of artisanal and small-scale mining in Nigeria?

1. No, I don’t feel that the small-scale miners resist the idea of formalization
2. Yes, I can feel that there is resistance
3. There is partial resistance within the artisanal and small-scale miners

• Does the government/ Federal Ministry of Mines and Solid Minerals allow artisanal and small-scale miners who are women and children working in the mining area?

1. Allows the women and children since there is no other source of income
2. Does not allow women and children working in mining area
3. The government/ Federal Ministry of Mines and Solid Minerals does not know that women and children are working in the area.
   • Do you think it is a good idea to use the incentives to encourage miners to form cooperatives?
     1. Yes, I agree on the idea of using incentives for informal artisanal to form cooperatives
     2. No, I don’t agree with the idea of using incentives to form cooperatives
     3. Partially agrees on the idea of cooperatives, with or without incentives
   • Is the idea of having a separate department for small-scale mining, and Artisanal mining is considerable?

1. Yes, it is considerable to differentiate and identify the needs of the small-scale miners and artisanal miners separately
2. No, it can only create further confusion within the mining sector
3. Partially, I haven’t thought about it
4. Technology

• Do you think that the government/ Federal Ministry of Mines and Solid Minerals is financially adequate in financing the technological needs of the miners?

1. Yes the government/ Federal Ministry of Mines and Solid Minerals is financially capable of financing the technological needs of the miners
   1. No the government/ Federal Ministry of Mines and Solid Minerals is unable to finance the technological needs of the miners
   2. The government/ Federal Ministry of Mines and Solid Minerals is partially able to finance the technological needs of the miners

• Do you agree with the idea of having computerized registry and Mining Cadastre system in accordance with international standards?

1. Yes, I agree on the idea
2. No, I don’t agree the idea (please explain)
3. Partially agrees on the idea (please explain)

• Do you think that the government/Federal Ministry will allow the use of incentives for technological transfer to enhance productivity?
  1. Yes, the government/ Federal Ministry of Mines and Solid Minerals is able to extend its use of incentives for technological transfer to enhance productivity
  2. No, the government/ Federal Ministry of Mines and Solid Minerals is unable to extend the use of incentive due to restrictions
  3. The government/ Federal Ministry of Mines and Solid Minerals is able to extend the use of incentive, however only partially.
• Do you think that the government/ Federal Ministry of Mines and Solid Minerals be able to formulate a technical training programme for artisanal and small-scale miners?
  1. Yes, I think that they are able to provide a technical training programme to the miners, especially artisanal and small-scale miners
  2. No, they are unable to provide a technical training programme to the miners because of resistance from the miners itself
  3. I agree that they are partially able to provide a technical training programme to the miners due to financial inadequacy
  4. Environment
• Did the government/ Federal Ministry of Mines and Solid Minerals provide a well-definition of exploration on mining in the country?

1. Yes, the government/ Federal Ministry of Mines and Solid Minerals had provided a clear definition to the foreign/local miners about mining exploration
2. No, the government/ Federal Ministry of Mines and Solid Minerals was not able to provide the clear definition to the foreign/local miners about the mining exploration because of the miner’s resistance/funding
3. Partially able to provide clear definition because of miners resistance/funding
   • Do you feel that the government sustain and protects the environment from further damage caused by unsophisticated mining operations?

1. Yes, I can feel that the government/ Federal Ministry of Mines and Solid Minerals clears the mining area that is highly damaged by unsophisticated mining operations
2. No, they are unable to clear the mining that is highly damaged by the unsophisticated mining operations because of the miner’s resistance, and there is no other mining site
3. I feel that they are partially able to clear the mining area due to the miner’s resistance, and there is no other mining site

• Do you feel that the government provides programmes and training to the miners especially those who are engaged in artisanal and small-scale mining to sustain and protect the environment?

1. Yes, they provide proper training and lay programmes to sustain and protect environment
2. No, they are unable to provide training and lay programmes to sustain and protect environment due to the miner’s resistance and low funding
3. I feel that they are partially able to provide training and lay programmes to sustain and protect environment due to the miner’s resistance and low

• Do you think that the government/ Federal Ministry of Mines and Solid Minerals allow the use of incentives to sustain and protect the environment from further damage due to unsophisticated mining?

1. Yes, they are able to extend its use of incentives to sustain and protect environment from further damage due to unsophisticated mining
2. No, they are unable to extend to sustain and protect environment from further damage because of unsophisticated mining due to restrictions
3. I think that they are able to extend the use of incentive to sustain and protect the environment from further damage due to unsophisticated mining, however only partially.

 

 

 

1. Legal

• According to regulation, do you agree that there is a clear timeframe for the allocation of licenses?

1. Yes, I agree that there is a clear timeframe for the allocation of licenses is prescribed by the regulations.
2. No, the regulation contains no clear timeframe for the allocation of licenses.
3. It is partially explained

• Is the information required for license applications easily accessible?

1. The required information for licensing is accessible
2. The required information for licensing is not accessible
3. The required information is partially accessible
   • Are the procedures for the allocation of mining rights laid out in the legal framework followed and practiced?
4. Procedures for the allocation of mining rights laid out in the legal framework are followed without exception.
5. Procedures for the allocation of mining rights are seldom or not followed
6. Partially followed due to deviation from the regulations occur or procedures are out-dated.
   • Do you agree that the artisanal and small-scale mining taking place under formalized procedure?
7. Yes, I agree that the artisanal and small-scale mining (ASM) operations take place under formalized procedures.
8. No, most ASM operations do not take place under formalized procedures.
9. Partially are involved under formalized procedures.