Nigeria’s Mining Industry at Risk as Illegal Miners Face Government Warning

The Federal Government of Nigeria has issued a stern warning against illegal mining activities that pose a threat to the country’s multi-billion dollar mining industry. Dr. Mary Ogbe, the Permanent Secretary of the Ministry of Mines and Steel Development, delivered the warning during the inauguration of the new National Executive Council of the Miners Association of Nigeria (MAN) in Abuja.

Represented by Deputy Director Mr. Okhuoya Sunday, Dr. Ogbe expressed deep concern about the impact of illegal mining on local industries that rely on imported minerals, despite the abundant availability of these minerals within Nigeria. She highlighted the issue of certain minerals being exported in raw form to Asian and European countries at extremely low prices, causing a loss of value and contributing to unemployment within Nigeria.

During her address, Dr. Ogbe urged the mining association to address the problem of some members engaging in illegal mining activities, which is impeding the sector’s progress. She emphasized the negative impact of this behaviour, stating that it has hindered sustainable development in the sector and led to significant revenue losses.

According to the Solid Minerals Development Fund (SMDF), Nigeria’s mining sector boasts 44 commercially viable minerals and is estimated to be worth a staggering $700 billion. However, the sector has not reached its full potential, as illegal mining continues to pose a threat to its growth and stability.

In recent years, there has been a notable increase in revenue generated from royalties and fees in the mining sector, amounting to over N7 billion in 2022, compared to N2 billion seven years ago. This demonstrates the sector’s significant economic potential and the importance of addressing the issue of illegal mining, in order to fully harness the wealth of resources that Nigeria possesses.

In conclusion, the government’s warning to illegal miners serves as a critical reminder of the importance of preserving and advancing Nigeria’s valuable mining industry. It is imperative for all stakeholders, including the government and mining associations, to work collaboratively towards eradicating illegal mining practices, in order to unlock the full economic potential of the sector and contribute to sustainable national development.