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Nigeria Loses $9Billion Annually to Illegal Mining

Parliamentarians in Nigeria have disclosed that the nation is losing $9 billion annually to illegal mining activities across the country. The House of Representatives Committee on Solid Minerals confirmed this on Monday.

In the last seven months, the Nigerian Army said it had arrested 387 suspects in connection with illegal mining activities.

Chairman of the committee, Jonathan Gaza Gbefwi who stated this at a public hearing organised by the committee to investigate issues of illegal mining in the solid mineral sector, said the menace had impacted the country’s ability to fully benefit from its mineral resources.

Gbefwi worried over an inadequate 3% royalty that was being paid by the few licensed miners in the country.

According to him, illegal mining has led to insecurity and conflicts over control of mining sites and their resources across the country.

He added that escalating violence has also exacerbated existing political and social tensions in mining communities.

“This public hearing is aimed at investigating illegal mining activities, under-reporting wins (extract E-Products) by mining and quarry licence operators, utilisation of financial interventions in the Nigerian solid minerals sector amounting to trillions of naira within the solid mineral sector and also the Nigeria minerals and Mining Act (Amendment Bill) and Nigeria Solid Minerals Development Company (establishment bill) respectively.

“Nigeria is losing N9 billion annually to illegal mining activities in the country. The leadership of the 10th House of Assembly has found it expedient and as a sense of duty to carry out these investigative hearings to necessitate transparency and accountability, public participation, policy formation and identify challenges and solutions that will ultimately lead to the revamping of our solid mineral sector.As we are all aware, illegal mining poses substantial risks to our nation’s economy, environment, and security.

“The unregulated exploitation of our natural resources jeopardises the sustainability of the mineral sector, leading to environmental degradation and revenue loss that could otherwise benefit our communities and nation as a whole.

“It is imperative that we take as a matter of urgency, decisive steps and necessary action to address this issue and ensure that our solid mineral sector operates within the framework of the law, protecting our natural resources for future generations”, he said.

In a related development, Chief of Defence Staff, General Christopher Musa stated that illegal miners had top personalities who offered them cover.

Director of Operations, Air Vice Marshal Nnaemeka Ignatius Ilo, who represented the Chief of Defence Staff, said most people involved in the process had connections backing them up, adding that foreigners also came into the country to carry out the illicit act.

Representative of the Nigeria Army, Colonel Tajudeen Lamidi, said that the Army had arrested 387 persons linked to illegal mining

Also, the Speaker of the House, Tajudeen Abbas who was represented by the House Leader, Professor Julius Ihonvbere, noted that illegal mining was a growing socio-economic challenge in Nigeria, adding that it had led to the loss of ecosystems and increased poverty level, especially among peasant farmers who rely mainly on environmental resources for sustenance.

 “The rise in illegal mining highlights fundamental social, institutional and structural problems in the country, therefore today’s interaction is aimed to provide enough guidance on curbing the menace of illegal mining, and also assess the role played by the Regulators in the process of their regulatory functions in the particularly as it relates to mining practices,” he stated.

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