The urgent need for stricter enforcement to combat illegal mining in Nigeria
Illegal mining activities in Nigeria have been a major concern for the government and citizens alike. The consequences of illegal mining go beyond financial losses, as it also fuels criminal activities such as banditry, terrorism, and kidnapping.
The recent acknowledgment by Minister of Solid Minerals, Dele Alake that influential individuals are involved in illegal mining activities in Nigeria offers little solace to its citizens.
Not only does the country suffer significant financial losses due to illegal mining, but it also fuels criminal activities such as banditry, terrorism, and kidnapping.
It is imperative for the government to mobilise its law enforcement resources to identify and prosecute the culprits, effectively eradicating this illicit enterprise.
Furthermore, mining presents a tremendous untapped opportunity for economic growth for both the states and the Federal Government. If properly regulated and organised, it has the potential to drive industrialisation, diversify exports, and generate mass employment.
Unfortunately, this sector has been neglected for decades as the government remains fixated on oil and gas, allowing illegal syndicates and artisans to thrive.
During a budget defense session at the House of Representatives, Minister Alake acknowledged that while the government has yet to identify the perpetrators, it is aware that influential Nigerians are controlling illegal mining operations.
He further emphasised that these powerful individuals are responsible for the insecurity prevalent in mining areas.In 2017, the government estimated that Nigeria loses $9 billion annually due to illegal mining, primarily through the illicit export of gold, lead, zinc, tin, and coal extracted from various parts of the country.
Alake highlighted that illegal mining not only deprives the government of royalties and taxes but also exacerbates the issue of revenue loss.
However, mere rhetoric is insufficient. Previous administrations have identified the problem but failed to implement effective solutions. In 2021, former Minister Uche Ogah revealed that gold smuggling in Nigeria often occurs through the use of private jets, resulting in a staggering $5 billion loss between 2012 and 2018.
It is high time for concrete action. The government must prioritise the eradication of illegal mining by strengthening law enforcement efforts, enhancing intelligence gathering, and implementing stringent regulations. Collaboration with international partners to curb the illicit export of minerals is also crucial.
Additionally, there is a pressing need to invest in the development of legal mining operations, providing support and incentives to encourage responsible mining practices. Nigeria cannot afford to let this issue persist.
The socio-economic potential of the mining sector must be harnessed for the benefit of the nation. By decisively addressing illegal mining, the government can pave the way for sustainable economic growth, job creation, and enhanced security. The time for action is now.
Nigeria has been blessed with an abundance of minerals, with 44 different types officially identified and available in over 500 locations across the country.
The Solid Minerals Development Fund, a partnership between Nigeria and the African Finance Corporation, estimates the potential value of the country’s mining industry at $700 billion. Furthermore, gold deposits in states such as Zamfara, Osun, Niger, Kebbi, Kaduna, Kogi, Kwara, Katsina, Kano, Nasarawa, Bauchi, and the Federal Capital Territory are estimated to be worth billions of dollars.
Illegal mining is a major problem in Nigeria, with the industry being aided by complicit officials, local chiefs, and rogue security personnel. This has resulted in lead poisoning, environmental degradation, and the sustenance of terrorism, banditry, and kidnapping industries.
It is time for the Federal Government, working with state governments, to decisively stamp out illegal mining. The barons, both local and foreign, should be identified, prosecuted, and their illegal operations closed. Existing programmes, such as Alake’s seven-point agenda and a new partnership with PwC, should be fast-tracked and translated into reality.
Nigeria has the potential to become a major player in the global mining industry, with gold reserves valued at $1.4 trillion. However, Switzerland exported $86.7 billion worth of gold in 2021, while Ghana and South Africa remain the top two producers in Africa.
Nigeria must make the right choices to fully harness its mineral resources and reap the benefits for its people. This includes investing in infrastructure, providing incentives for foreign investors, and creating a conducive environment for mining operations. The government should also prioritise the safety and well-being of local communities affected by mining activities.
This includes enforcing environmental regulations, providing healthcare services, and compensating those affected by lead poisoning. In addition, the government should work with local communities to ensure that they benefit from mining activities. This includes providing job opportunities, supporting local businesses, and investing in education and infrastructure. The government should also prioritise transparency and accountability in the mining industry.
It must also be ensured that mining companies pay their fair share of taxes, and that revenues from mining activities are used to benefit the country as a whole.
Also, the government should also work to diversify the economy, so that it is not overly reliant on the mining industry. This includes investing in agriculture, manufacturing, and other sectors that can create jobs and drive economic growth.
Finally, the government should work with other African countries to promote regional cooperation in the mining industry. This includes sharing best practices, collaborating on infrastructure projects, and promoting trade and investment in the sector.
Nigeria has the potential to become a major player in the global mining industry, but this will require decisive action from the government to stamp out illegal mining, invest in infrastructure, prioritise the safety and well-being of local communities, promote transparency and accountability, diversify the economy, and promote regional cooperation.
