US Warns of Illegal Mining Threat to Nigeria’s Economic Growth

The U.S. warns that illegal mining threatens Nigeria’s economy and sovereignty, highlighting the need for enhanced transparency and accountability in the sector. This follows the EFCC’s prosecution of two Chinese nationals for illegal mining activities. The government suffers significant financial losses due to illicit operations, estimated at over $9 billion annually.

The United States has issued a stark warning regarding the impact of illegal mining on Nigeria’s economy and sovereignty. In a social media post tagged TransparencyTuesday, the U.S. Mission to Nigeria asserted that illicit mining practices not only jeopardise the nation’s economic prospects but also contribute to widespread corruption across borders. They emphasised the necessity for robust governance in the mining sector, which is deemed essential for promoting a secure and transparent global supply chain.

The U.S. Mission stated, “Accountability in the extractives sector is essential to protecting Nigeria’s sovereignty and ensuring a secure and transparent global supply chain, which is core to U.S. strategic interests.” This message comes on the heels of Nigeria’s Economic and Financial Crimes Commission (EFCC) revealing the arrest of two Chinese nationals for their alleged involvement in illegal mining and unlawful resource exportation.

Zhang Hong Lin and Zhao Pei Hai were presented before Justice Chukwujekwu Aneke at the Federal High Court in Ikoyi, Lagos, on June 4, 2025. They face serious allegations including conspiracy and unlawful possession of mica and other valuable minerals without the requisite government approval. The EFCC has also reported that a third suspect, Gao Pei Yu, remains at large, supposedly working to defraud the Federal Government through illegal mineral exports.

Both Zhang and Zhao have pleaded not guilty to the charges. During the court session, the prosecution, represented by Bilkisu Buhari, sought to have them remanded in custody until the trial. The defence countered, suggesting they should stay with the EFCC. Justice Aneke ultimately ordered their detention in a Correctional Centre, with proceedings set to resume on July 4.

Illegal mining is said to be costing Nigeria over $9 billion annually, while the country only receives minimal revenue through a three percent royalty from licensed operators. In related efforts to combat this issue, the Nigerian Army reported the arrest of over 387 individuals linked to illegal mining over the past seven months, with many arrests related to the rising extraction of lithium, a mineral in high demand.

The U.S. has raised significant concerns regarding illegal mining in Nigeria, linking it to severe threats against economic growth and national integrity. With recent legal actions against foreign nationals and ongoing arrests, there’s a clear push for stronger governance in the mining sector. Overall, illegal mining not only undermines financial returns for the government but also invites further corruption, making reform urgent.

Original Source: guardian.ng