The solid minerals sector in Nigeria is currently facing a significant challenge, with substantial financial losses running into billions of dollars annually as a result of illegal mining and theft of valuable resources. This has had a major impact on the country’s economy, with the solid minerals sector now contributing less than five per cent to the country’s GDP, compared to its historical contribution of 45 per cent before independence.
The neglect of the sector can be attributed to an overreliance on crude oil, which has diverted attention from other valuable mineral resources. However, there is a growing recognition of the potential economic benefits of the solid minerals industry, leading to renewed efforts to tackle illegal mining and exploitation.
The Ministry of Solid Minerals has estimated that Nigeria is losing between $2bn and $3bn annually due to illegal mining activities. According to the Nigeria Extractive Industry Transparency Initiative (NEITI), the country is losing $9 billion annually from the illegal extraction of gold alone, often facilitated by powerful individuals and even international collaborators.
To address this issue, the federal government has taken proactive measures to crackdown on illegal mining. The newly established Mining Marshal force, comprising 2,220 specially trained personnel from the Nigeria Security and Civil Defence Corps (NSCDC), is leading efforts to protect mining environments and combat illegal mining activities. With over 200 arrests and ongoing prosecutions, the Marshal force is making significant strides in disrupting illegal mining operations.
One such operation led to the arrest and sealing of an illegal lithium mining site in the Federal Capital Territory, where over 2,000 tonnes of lithium were confiscated. The suspects, who had been operating at the site for over a year without proper authorisation, were apprehended, and their mining equipment was seized as evidence for prosecution.
In addition to the Mining Marshals, the Economic and Financial Crimes Commission (EFCC) has also been proactive in addressing illegal mining activities. The EFCC’s efforts have led to the arrest and prosecution of several Chinese nationals involved in illegal mining operations, demonstrating a multi-pronged approach to combating the issue.
The impact of illegal mining extends beyond economic losses, as it also contributes to environmental degradation and insecurity. The illicit financial flow from illegal mining activities has been linked to funding terrorism and perpetuating insecurity in affected regions. The global community has also been implicated in the complicity of illegal mining, necessitating a coordinated effort to address the issue.
Despite the challenges, Minister of Solid Minerals Development, Dr Oladele Alake, remains optimistic about the future of the solid minerals sector. He has outlined a seven-point agenda to reform the industry and aims to increase its contribution to Nigeria’s GDP to 50 percent. While this is a daunting task, the government’s decisive actions against illegal mining and exploitation are vital steps towards realizing this vision.
In conclusion, the fight against illegal mining in Nigeria’s solid minerals sector is gaining momentum, with targeted interventions and coordinated efforts aimed at curbing economic losses, environmental degradation, and insecurity. The resolve to tackle this issue demonstrates a commitment to harnessing the full potential of Nigeria’s valuable mineral resources for national development and prosperity.