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Nigeria’s extractive industry is practically a crime scene. Just like the country is losing billions of dollars annually to the theft of crude oil, her current economic mainstay, the same pillaging of the country’s natural resources, is happening in the solid minerals sector, described as the next oil, a metaphor for her next biggest income earner.
Available geo-scientific data estimates Nigeria’s solid minerals wealth at about $750bn; however, Nigerian authorities say that further surveys will show that the country has much more.
Minister of solid minerals development, Dr Oladele Alake, revealed that a preliminary survey of the nation’s minerals by GeoScan, a German company, gave a figure of $750bn worth of minerals buried under Nigerian soil, but that it should be more.
“That is a conservative estimate. When we conduct a serious, accurate data exploration, we will discover trillions of solid minerals embedded under it. By the time we are done with all of these efforts, input, and policies we are putting in place, trillions of naira will be a child’s play, and we will be nudging trillions of dollars,” Alake said.
Nigeria is home to about 44 solid minerals in commercial quantity. All the 36 states of the federation and Abuja, the capital city, are blessed with at least one or more of such minerals. Some of the notable ones include gold, diamond, lead, zinc, iron ore, coal, topaz, bitumen, marble, granite, talc, bauxite, tantalite, uranium, gemstones, feldspar, gypsum, barite, dolomite and Kaolin. Nigeria is also home to some minerals needed for energy transition, like lithium, cobalt, copper and manganese.
LEADERSHIP Sunday learned that Nigeria has a policy of not mining uranium due to its radioactive nature, among other reasons.
Before Independence in 1960, mining solid minerals such as coal, columbite, tin, lead, and zinc contributed about 45 per cent to the country’s Gross Domestic Product. Still, solid minerals add less than five per cent to the GDP today.
The focus on oil and lack of political will to rein in illegal operators meant Nigeria was not accruing the necessary income from exploiting these mineral resources.
Edosa Oviawe, programmes manager at Global Rights, an international non-government that advocates for justice and sustainability in the extractive industry, among other things, says that when Nigeria discovered oil in Oloibiri in 1956, coupled with the role coal played in sustaining the Biafra war effort, the country removed its attention from solid minerals, and that allowed all manner of persons to take over the space.
“Historically, we’ve seen how the sector has suffered neglect due to our over-concentration on oil in Nigeria. But this sector offers us an opportunity for growth, national growth, and development over time,” he said.
But all this is all set to change in the present dispensation with the federal government, in its first year in office, showing the necessary political will to sanitise operations in the industry.
At various forums in the last ten months, the minister of solid minerals development, Dr Oladele Alake, stressed that the industry is poised to become the nation’s next cash cow after oil and that under him, the governance structures to realise this vision were being set up, chief among them being to sanitise the various operations in the sector.
In April this year, at the inauguration of the New Headquarters Naval Training Command in Ebubu community, Eleme Local Government Area of Rivers State, the Speaker of the House of Representatives, Tajudeen Abbas, stated that Nigeria still loses an estimated 300,000 barrels of crude oil per day to oil theft, pipeline vandalisation and other forms of such criminality, amounting to about N1.29 trillion annually.
While it is easier to track earnings loss due to theft and other infractions in the oil sector due to the industry’s development in the last six decades since crude was discovered in Oloibiri, Bayelsa State, in 1956, the solid mineral sector is a different ball game due to long decades of neglect and lack of adequate monitoring.
This is not helped by the fact that about 80 per cent of mining in Nigeria is done by artisanal miners whose operations are largely unregulated, a fact acknowledged by the Nigeria Extractive Industry Transparency Initiative (NEITI).
While NEITI estimates the losses to illegal mining at $2bn—$3 bn annually, other estimates give a much higher ceiling.
NEITI director of technical, Dr Dieter Bassi, said Nigeria is losing $2bn—$3 bn to illegal mining annually during a town hall meeting on the dangers of illicit foreign mining in Nigeria on Raypower FM monitored by our correspondent; however, they accepted that this figure might not be comprehensive.
He said, “The activities of artisanal miners are unregulated, which means we cannot know how much they are taking out of the country in terms of quantity and quality.”
According to him, due to the porous nature of the country’s borders, many people come from other countries to engage in illegal mining and exports. He added, “The artisan miners are mostly scavengers rolling on the surface and being given stipends. Most of the time, the intermediaries profit from these things.
“In terms of revenue loss, the mining sector contributes less than one per cent of the GDP because of these activities. However, this country would have substantial revenue gainers if the actual activities were captured. Presently, we are losing about $2-$3bn from mining.
LEADERSHIP Sunday reports that the NEITI figure is far less than other estimates.
According to the West African subregional bloc ECOWAS, Nigeria loses 91 percent of its mining revenue to illegal mining.
The speaker of the ECOWAS Parliament, Mohamed Tunis, at the opening of a three-day seminar organised by the Parliament on “Illegal mining and its implications in the ECOWAS Region” recently, stated that a staggering 80 per cent of mining in the country’s northwest region is conducted illegally, costing the nation 91 per cent of potential mining revenue.”
Former minister of state for mines and steel development Uche Ogah claimed that about $9 billion worth of gold was illegally extracted from Nigeria annually, often transported through private jets.
Mr Ogah had accused private jet owners of aiding and abetting gold smuggling in the country.
“Gold smuggling in Nigeria is often done using private jets. That is the very reason private jet ownership and operations need to be streamlined in the country,” he had said.
In December last year, the present minister of solid minerals development, Dr Alake, seemed to have corroborated Ogah’s position when he blamed ‘powerful Nigerians’ for the illegal mining activities and acts of terrorism going on in different parts of the country.
At a budget defence session of his ministry’s 2024 budget estimates before the House Committee on Solid Minerals at the National Assembly Complex, Abuja, he debunked the notion that foreigners were to blame for the economic sabotage, saying they have influential Nigerians as collaborators.
“Nigerians are those powerful people behind them (illegal miners); we are identifying them with both kinetic and non-kinetic means. Illegal mines cause insecurity in the mining areas, and these are powerful individuals in society, including Nigerians,” Alake said.
In another public outing, Alake revealed that he received threats for his revelation but that he and his team are undeterred in their drive to sanitise the industry and promote it as Nigeria’s next top-income earner.
He said, “I said it during my Ministry’s budget defence at the National Assembly that influential Nigerians are behind the banditry associated with illegal mining in the country.
“I said it openly. However, since I made the disclosure, I have been receiving threats, but we are undaunted because it has to be said.
“In any case, I was not saying anything new. Most people knew it. Most people have been saying it. I only gave it an official stamp based on the intelligence report.”
Following the revelations, in November 2023, the House of Representatives resolved to investigate illegal mining in the solid minerals sector, which costs the federal government $9 billion annually. Only three per cent of royalties are paid by a few licensed miners.
While little has been heard about the probe, Dele Alake and his Ministry of Solid Minerals team have fought against those stealing Nigeria’s natural wealth.
Since November last year, the ministry has revoked 2,531 mineral titles due to payment defaults and to crack down on licence racketeering.
But to crack down on the main challenge in the industry—illegal mining and related activities—the federal government set up a 2,220-strong specially trained Mining Marshal force made up of personnel of the Nigeria Security and Civil Defence Corps (NSCDC) to protect the mining environment and battle illegal miners in the country, with 60 personnel deployed per state.
However, that is just the initial force. The plan is to continuously grow the outfit with personnel drawn from other Services like the Army, Air Force, Police, and Intelligence agencies, towards waging a total battle against people, Nigerians and foreigners alike, stealing minerals from Nigerian soil.
Unlike before the present administration came on board one year ago, it is expected to read reports of persons being arrested and prosecuted for illegal operations in solid minerals.
LEADERSHIP Sunday learned that since the inauguration of the first batch of 2,220 mining marshals in March this year, over 200 illegal mining suspects have been arrested, and 133 prosecutions are ongoing. Also, illegally mined minerals have been confiscated and forfeited to the federal government.
Illegal Lithium Mining Site Sealed in FCT, 3 Arrested
Two weeks ago, the Mining Marshalls arrested three suspects and sealed an illegal lithium mining site at Gaube, Kuje area council of the Federal Capital Territory (FCT), Abuja,
The suspects admitted they had been operating at the site for over a year. And, at the time of their arrest, over 2,000 tonnes of lithium was on the ground, highlighting the scale of the illegal operation.
Intelligence gathering and surveillance, led by the national commander of the Mining Marshalls, NSCDC Assistant Commandant John Onoja Attah, made the operation possible.
AC Onoja Attah said: “Whereas we met about 2000 tonnes of lithium on the ground, the quantity of lithium mined since the commencement of operation can’t be quantified as they were not being recorded due to the illegality of their mining operations.”
The seized minerals and equipment on site have been marked as exhibits for prosecution, and further investigations are ongoing to uncover the extent of the illegal activities, he said
It was learned that the suspects lacked any documentation authorising their mining activities on the site. Furthermore, a legitimate mining company with the necessary permits for the exact location could not access the site due to the illegal miners’ activities and resistance.
“This is a clear case of illegal miners displacing lawful miners and investors, which will not be tolerated,” the Commander of the Mining Marshals said, adding that the crackdown is part of a broader effort to combat revenue losses in the mining sector of Nigeria.
Mining Marshalls Nab 4 Chinese in Nasarawa
Earlier in April, the Mining Marshalls, acting on credible intelligence, arrested four Chinese at an illegal mining site where lithium is sold at Karu Local Government Area of Nasarawa State.
The Mining Marshall Commander, ACC Onoja, said the minerals were seized under section 146 (b) of the Minerals and Mining Act, 2007. The arrest followed the suspect’s refusal to honour the command invitation for questioning.”
He added that an application would be lodged in Court for the forfeiture of the impounded lithium minerals, and the proceeds would be remitted to the federal government.
He said preliminary investigations had unearthed where the minerals were disposed of without the required license.
EFCC Also Tackling Illegal Miners
LEADERSHIP Sunday reports that the Mining Marshals are not the only government security agencies that illegal mining operators fear; the Economic and Financial Crimes Commission (EFCC) has also been working to deal with those engaged in the theft of the country’s solid mineral assets.
In February this year, the Ilorin Zonal Command of the EFCC arrested 41 suspects and impounded 12 trucks for their alleged involvement in illegal mining and possession of different types of solid minerals without appropriate licences.
They were arrested on Monday, February 5, 2024, at different locations in Share, Banni, Lade, Patigi, Okolowo in Kwara, Igbeti, and Ogbomosho in Oyo State. Their arrest followed credible intelligence about illegal miners transporting truckloads of assorted minerals outside the state without the requisite licences.
The suspects were charged in court as soon as investigations were concluded.
13 Chinese Nationals Arrested In Kwara, 1 Convicted
Last year, the same Ilorin Zonal Command of the EFCC arrested 13 Chinese nationals over offences bordering on illegal mining activities in Ilorin, Kwara State.
The offence is contrary to and punishable under Section 1(8) (b) of the Miscellaneous Offences Act Cap M17, 1983.
The suspects, a female and 12 males, were arrested on Wednesday, July 12, 2023, at the Government Reserved Area, G.R.A Ilorin, following credible intelligence about their activities, which included, but were not limited to, illegal mining and non-payment of royalties to the Nigerian Government as required by law.
The suspects were Guo Ya Wang (36), Lizli Hui (42), Guo Jian Rong (36), Lizh Shen Xianian (37), Lishow Wu (26), Guo Pan (38), Lia Meiyu (53), Guo Kai Quan (36) Lin Pan (50), Ma Jan (38), Wendy Wei Suqin (31), Li Zhinguo Wei (29) and Xie Zhinguo (53).
Before their arrest, discrete investigations into the activities of illegal mining operators in the state revealed that they had illicit mining sites in almost all 16 Local Government Areas.
Upon interrogation, the arrested suspects confessed to working for a Chinese Company known as W. Mining Global Service Limited, situated at Olayinka in the Ifelodun Local Government Area of the state.
It was gathered that the company was using illegally mined minerals to produce marble and sell it locally in Nigeria.
The Ilorin EFCC Command secured the conviction of Gang Deng, a Chinese national, and the final forfeiture of two trucks with their mineral contents to the federal government on July 12, 2023.
Soldiers Arrest 4 In Borno
In March, troops of 331 Battalion in Bayo LGA of Borno state arrested four persons for illegal mining and handed them over to the Borno police command.
Borno Police spokesperson Nahum Kenneth, who revealed this, said the suspects were apprehended with a diesel tanker truck on March 24 and 70 bags of assorted solid minerals, suspected to be monoxide.
He said the suspects confessed to the crime and would be charged in court after the investigation concluded.
LEADERSHIP Sunday learned that in October 2023, the Borno State government had banned all mining activities due to the “fragile security situation”. Still, despite the ban, illegal mining activities are rampant in Borno, one of Nigeria’s states with a profusion of mineral resources.
More and more such arrests are coming as the country is now awakened to the rapacious activities of illegal miners.
Insecurity and Environmental Degradation
Apart from the economic sabotage displayed in the grand theft of the nation’s mineral wealth, two accompanying ills are insecurity and environmental destruction.
Last month, President Bola Tinubu accused the global community of complicity in the disturbing rise in illegal mining, illicit financial flow, and terrorism funding in Africa.
Illegal mining activities in Zamfara, Kaduna, Katsina, and even in Kogi and Niger have already thrown up security challenges, with reported cases of banditry and communal unrest in these states. And despite the no-fly zone declared on Zamfara, there are reports that aircraft still land in the state to steal precious stones. They are believed to be the ones arming the bandits in exchange.
Solid Minerals To Add 50 Percent To GDP?
Minister Alake is bullish that with the reforms the present administration is bringing to bear in the industry, encapsulated in his seven-point agenda, the solid minerals sector will soon become Nigeria’s primary income earner and contribute 50 percent to Nigeria’s GDP. That is a tall order, considering that the industry contributed a paltry 0.63% to the GDP in a recent report by NEITI.
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