Illegal Mining: FG loses $9bn annually, says House C’ttee

By Tom Okpe

Chairman, House Committee on Solid Minerals, Rep Jonathan Gaza, has disclosed that illegal mining costs the country $9 billion each year, with the only fund coming from a 3% royalty paid by few licenced miners.

This was after the revelation of the Chief of Defence Staff, General Christopher Musa, that those involved in illegal mining have connections, so often boasts of having links with those at the top.

Also, the Nigeria Army says it arrested 387 individuals in connection with illegal mining in the country.

Speaking at a Public Hearing, organised by the House Committee on Solid Minerals Development on the need to investigate illegal mining in the Solid Mineral sector in Abuja on Monday, Gaza said the development had hampered the country’s ability to maximize the benefits from its Minerals resources.

According to him, the negative impacts of illegal mining have led to insecurity and conflicts over control of mining sites and their resources.

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He said these conflicts have escalated into violence thereby exacerbating existing political and social tensions in affected communities which has resulted in the limited data availability and inadequate measures to control this illicit practice.

“This public hearing is aimed to investigate illegal mining activities, under-reporting wins; extract E-Products, by Mining and Quarry license operators, utilization of financial interventions in the Nigerian Solid Minerals sector amounting to trillions of Naira within the sector.

“The leadership of the 10th House of Assembly has found it expedient and a sense of duty to carry out these investigative hearings to necessitate transparency and accountability, public participation, policy formation and identify challenges and solutions that will ultimately lead to the revamping of our Solid Mineral sector.

“As we are all aware, illegal mining poses substantial risks to our nation’s economy, environment, and security.

“The unregulated exploitation of our natural resources jeopardizes the sustainability of the Mineral sector, leading to environmental degradation and revenue loss that could otherwise benefit our communities and nation as a whole.

“It is imperative that we take, as a matter of urgency, decisive steps and necessary action to address this issue and ensure that our Solid Mineral sector operates within the framework of the law, protecting our natural resources for future generations.

“Furthermore, as representatives of the people, the parliament is deeply worried about the loss of revenue, through unregulated and illicit mining operations with the Federal Government, disclosing that unlawful mining costs the country $9bn each year, with the only money coming from a 3% royalty, paid by few licensed miners.

“By attentively listening to their testimonies and perspectives, we can gain a deeper understanding of the challenges posed by illegal mining and develop effective strategies to combat this illicit activity.

Speaking on why illegal mining have continued to exist, despite move by the Federal Government to curtail it, Director Of Operations, Air Vice Marshal Nnaemeka Ignatius Ilo who represented the Chief of Defence staff said most people involved in the process have connections, backing them up, adding that foreigners also come into the country to carry out the illegal act.

“Talking of illegal mining, I am going to talk about how the military sees it.There are so many other stakeholders that I want to talk about. From our various operations and statistics we have, we notice that the framework guiding mining in Nigeria is good, but still needs to be. It needs to be strengthened.

“In 2018 or so, during the last administration, there was a ban on illegal mining in South Africa, South Africa, Sinai, Nigeria, which even established a gold mine zone.

“Despite that ban, mining licenses were issued to people to mine in that zone. So, the strengthening of the institutional framework is key,” he said.

He further revealed that non-citizens come even, from Burkina Faso to mine in Nigeria.

“So, the strength of our borders, too, is a factor. Why I’m saying all this is that there’s need for the Government to properly equip those involved, to checkmate most of this illegal mining.

“There’s need for the Government to equip them properly and also, give them marching orders. It’s one thing to say and another thing to see that the Government is really committed to dealing with people,” he added.

He proposes that anyone caught in this a t of illegal mining, should be dealt with, decisively, to act as deterrent to others.

Also speaking, representative of the Nigeria Army, Colonel Tajudeen Lamidi said the Nigeria Army arrested 387 individuals in connection with illegal mining.

“The Nigerian Army conducted a wide range of operations across the geopolitical zones of the country. I think virtually as it is now, we have the Nigerian Army, deployed to almost every state of the country in one operation or the other.

“Because of this, what we do basically is to support those agencies that are constantly mandated to protect the critical national infrastructures of the country, including mining.

“In our operations, we have to contend with illegal miners. And what we do is after arresting them, we hand them over to the appropriate agency available in that area. Some of these agencies include the Department of State Security Services, the Nigerian Police Force, and the Nigerian Security and Civil Defense Corps,” he stated.

He also said illegal miners are been arrested in Zamfara State and the illegally act, continues.

While declaring the Public Hearing open, Speaker of the House, Rep Tajudeen Abbas who was represented by the Leader Professor Julius Ihonvbere noted that Illegal mining activity is a growing socio-economic challenge in Nigeria, adding that it has led to loss of ecosystems and increased poverty level especially, among peasant farmers who depend solely on environmental resources for a living.

“Nigeria is richly blessed with Solid Minerals, which should bring great fortune to the country and the citizens, but the wealth is largely stolen by criminal elements.

“According to reports, an estimated 80% of mining in the North West region is carried out illegally and the mining of large untapped mineral deposits in the area is at the root of community violence,” the Speaker noted.

He noted that the decision of the House of Representatives to investigate illegal mining shows commitment and determination of the 10th House, to take decisive steps towards addressing nefarious mining practices and non-compliance with set standards in the solid minerals sector.