Urgent Reforms Needed in the Nigerian Mining Sector

The mining sector in Nigeria is in urgent need of reform, particularly in light of recent security concerns stemming from illegal mining activities. Despite the abundance of solid mineral resources such as gold, coal, iron ore, and limestone, the sector remains underdeveloped due to a lack of government investment and the proliferation of illegal mining operations.

Reports have indicated that illegal mining activities have resulted in the country losing a staggering 91 per cent of its revenue from the mining sector, with 80 per cent of mining in Nigeria’s northwest region being conducted illicitly. This not only impedes the economic potential of the country but also poses a significant security threat to the nation and its citizens.

The ramifications of illegal mining activities extend beyond financial losses, as they fuel insecurity and have led to incidents such as the recent explosion in Ibadan, Oyo State. This explosion resulted in loss of life and the destruction of properties worth billions of naira, highlighting the perils posed by illegal mining. It is essential that the government takes decisive action to prevent the recurrence of such incidents.

Although it is commendable that Governor Seyi Makinde recently signed an Executive Order on handling and storage of harmful substances to prevent future occurrences, stronger efforts and collaboration between the state and federal government are needed to address the root causes of illegal mining. The enforcement of regulations, investigation of perpetrators, and strategic investment in the mining industry must be prioritised to ensure the safety of lives and properties.

Moreover, the government must collaborate with the private sector to develop the mining industry and create employment opportunities for Nigerians, particularly in rural areas where poverty is prevalent. This would not only benefit the economy but also improve the standard of living for many Nigerians.

It is imperative that the government takes the issue of the mining sector seriously and implements policies and investments to combat illegal mining activities. By doing so, it can prevent further loss of lives and properties, generate revenue, and create much-needed employment opportunities for Nigerians. The time to act and reform the mining sector is now.