Investigating Rampant Illegal Mining: A Critical Look at the Federal Government’s Losses
The House of Representatives has recently made a significant decision to initiate an investigation into the issue of illegal mining within the solid mineral sector. Reports suggest that this illicit activity is resulting in an annual loss of $9 billion for the federal government, with only a minimal three per cent royalties being paid by a select group of licensed miners.
During a recent plenary session, the Deputy House Leader, Hon. Ibrahim Abdullahi Halims (APC, Kogi), presented a motion addressing the pressing need to examine the prevalence of unlawful mining in Nigeria. Halims highlighted the abundant mineral resources in Nigeria that are currently underutilised and have the potential to substantially contribute to economic diversification, employment opportunities, and revenue generation.
The rationale for this investigation stems from a report released by the Nigeria Extractive Industries Transparency Initiative (NEITI) in 2021. According to the report, the solid minerals sector only accounts for 0.63 per cent of the Gross Domestic Product (GDP), equating to N1.10 trillion, and contributes a mere 2.62 per cent to the government’s total revenue of N6.63 trillion.
Halims expressed profound concern regarding the challenges faced by the solid minerals sector, particularly as a result of illegal mining activities. He acknowledged the adverse impact of these activities on the environment, national security, and economic growth. The staggering annual loss of $9 billion in government revenue due to unregulated mining operations, in addition to a meagre three per cent royalties from licensed miners, was highlighted as a major obstacle to the optimal utilisation of the country’s mineral resources.
The motion further underscored the detrimental effects of illegal mining, including insecurity and conflicts arising from disputes over control of mining sites and their resources. These conflicts have escalated to the point of violence, intensifying existing political and social tensions within affected communities. In response to these concerns, the governors of Taraba, Benue, and Nasarawa States have taken proactive measures by enacting Executive Orders to prohibit illegal mining, protect host communities, and regulate mining activities within their respective states.
Halims emphasized the urgency of revitalising and developing the solid mineral sector for the benefit of the Nigerian economy and its citizens. It is imperative for the federal government to take swift and decisive action to address this critical issue.
It is evident that the impact of illegal mining on the solid mineral sector is significant. By delving into the root causes of illicit mining and the subsequent economic, environmental, and security implications, the House of Representatives has taken a commendable step towards addressing a significant challenge that has plagued the nation. The need for a thorough and impartial investigation cannot be overlooked, and the outcome has the potential to pave the way for remarkable improvements in the management and regulation of Nigeria’s mineral resources.
