Nigeria’s mining sector is rich in various minerals, contributing significantly to the economy, with an estimated US$700 billion in commercially viable resources. However, illegal mining activities, primarily led by foreign criminals, threaten this potential. Since 2020, multiple arrests, predominantly of Chinese nationals involved in illegal mining, highlight the crisis. Policymaking inconsistencies, corruption, and inadequate regulatory oversight enable these foreign actors to exploit Nigeria’s resources, particularly in regions vulnerable to banditry and local criminal networks.

The focus on gold mining attracts foreign demand, worsening criminal activities in the north-west, where links between illegal mining and armed banditry have been established. Despite its economic importance, the mining sector has been neglected by security forces until recent incidents highlighted its connection to broader insecurity. Furthermore, corruption within immigration services facilitates the entry of foreign miners under the guise of tourism.

Law enforcement officials recommend that the Nigerian government prioritise solid minerals to match its oil and gas focus. Comprehensive inter-agency collaboration is vital to address the influx of illegal foreign miners and their links to larger criminal syndicates. Community engagement is essential to combat illegal mining activities, raising awareness of their negative social, environmental, and security implications. Legal reforms are also necessary to enhance penalties for illicit mining and improve regulatory frameworks.

Nigeria, endowed with a diverse range of mineral resources, has immense potential for economic diversification and increased foreign earnings. However, the mining sector suffers from issues like illegal operations, insufficient security, and policy inconsistencies, which hinder its growth. Foreign criminals, particularly from China, have exploited these weaknesses, engaging in illegal mining, which is often linked to wider criminal activities, including banditry and corruption at multiple levels.

The illegal mining activities in Nigeria, particularly by foreign nationals, present significant threats to the country’s security and economic potential. The government’s failure to address these issues through coherent policy, adequate regulatory measures, and improved community engagement exacerbates the situation. Immediate action is required to reinforce regulations, bolster security measures, and enhance inter-agency cooperation, ensuring that Nigeria’s valuable mineral resources are protected and utilised effectively for national benefit.

Original Source: www.eurasiareview.com

The post Nigeria’s Mining Crisis: The Threat of Foreign Criminals in the Gold Sector first appeared on Nigerian Mining News.

The Nigeria Mining Cadastre Office (NMCO) has issued around 7,000 mining licenses, yet fewer than 1,000 mines are currently operational. NMCO’s Director General, Obadiah Nkom, made this revelation during a meeting with the House Committee on Solid Minerals. He stressed the need for reform in licensing fees and ownership regulations to improve the sector. Despite generating over N8 billion in revenue, NMCO faces funding shortages that hinder its effectiveness. Nkom also highlighted progress in digital accessibility and collaborations with the Economic and Financial Crimes Commission to combat illegal mining. Meanwhile, Chairman Jonathan Gaza acknowledged the issues in licensing and confirmed that steps will be taken to address the agency’s financial constraints.

The article discusses the operational challenges faced by the Nigeria Mining Cadastre Office (NMCO) despite a high number of issued mining licenses. NMCO, which operates under the Federal Ministry of Solid Minerals Development, seeks to reform the licensing process and improve fund allocation. Illegal mining activities remain a concern, prompting both the NMCO and government officials to explore measures that enhance compliance with mining regulations and strengthen monitoring operations through technology.

In summary, the NMCO’s struggle with high licensing numbers versus active mines highlights significant inefficiencies in the Nigerian mining sector. Calls for funding reforms and improved regulation are crucial to combat illegal mining activities. Collaboration with authorities and the move towards digital solutions are steps being considered to enhance transparency and operational effectiveness in the field.

Original Source: nairametrics.com

The post Concerns Rise as Nigeria Issues 7,000 Mining Licenses with Only 1,000 Active Mines first appeared on Nigerian Mining News.