Nigerian states are currently facing a significant challenge with the issue of illegal miners taking control of valuable solid minerals, resulting in financial strain for the states and uncertainty surrounding potential investment opportunities. This problem is further complicated by a conflict between the Federal Government and the states, as well as security challenges. Despite efforts by the President Bola Tinubu administration to prioritize solid minerals, the actual impact has fallen short of expectations.
A major cause for concern is the widespread nature of illegal mining in states such as Plateau, Kaduna, and Bauchi, leading to substantial losses in gemstones and other minerals. The estimated value of gemstone deposits alone is approximately $310.9 million, with significant losses incurred due to illegal mining activities. Furthermore, Nigeria possesses significant deposits of talc, iron ore, and gold, yet the full economic potential of these resources remains untapped.
The lack of capacity for processing and regulating these minerals at the state level has contributed to the problem. The various legal and regulatory frameworks, combined with insufficient technical personnel to monitor mining activities, emphasize the challenges faced by both the federal and state governments in addressing illegal mining. The inadequate infrastructure and expertise to regulate mining activities further exacerbate the situation.
Experts have emphasized the need for a comprehensive approach to address illegal mining, highlighting the importance of placing control over mining activities in the exclusive list. This would align with global standards and create a conducive environment for attracting foreign investors. However, the current approach adopted by some states, through unilateral actions such as suspending mining operations, has caused further disruption and legal conflicts.
The implications of illegal mining extend beyond economic losses, affecting issues of governance and stakeholder involvement. Traditional rulers and community leaders have been implicated in collaborating with illegal miners, further complicating the enforcement of mining regulations. The lack of a coordinated approach at the federal and state levels is hindering the effective regulation and enforcement of mining activities.
In light of these challenges, there is a pressing need for a cohesive strategy that involves collaboration between the federal government, state governments, and local communities to address the issues of illegal mining. This includes revising the process of granting mining permits, conducting comprehensive geological surveys, and imposing stringent sanctions for infractions. The establishment of effective regulatory mechanisms, along with enhanced stakeholder involvement, will be crucial in realizing the full potential of Nigeria’s solid mineral sector.
While the future of Nigeria’s economy depends on the development of solid minerals, it is imperative for all stakeholders to work together to overcome the obstacles hindering the growth of this critical sector. The federal and state governments must align their efforts to create a conducive environment for mining activities, ensuring that the economic benefits are harnessed in a sustainable and responsible manner. Only through concerted action and collaboration can the predicament of mineral resources in Nigerian states be effectively addressed.
By Kingsley Jeremiah, Editor, Energy & Power