By Comfort Olayinka
Chairman of the House of Representatives Committee on Solid Minerals, Hon. Jonathan Gaza, revealed on Monday that Nigeria loses approximately $9 billion annually to illegal mining activities.
He made this disclosure in Abuja during an investigative hearing into illegal mining, under-reporting of wins (extracted products) by mining and quarry license operators, and the utilization of financial interventions in the Nigerian solid minerals sector, totaling trillions of naira.
The hearing also aimed to discuss the Nigeria Minerals and Mining Act (amendment bill) and the Nigeria Solid Minerals Development Company (establishment bill). Gaza emphasized the need for proper regulation and revenue generation in the solid minerals sector.
He noted that only 3% of royalties are paid by a few licensed miners, while a staggering 80% of mining in the North West region is carried out illegally. This illegal mining activity is fueling community violence and undermining the country’s economic potential.
The committee aims to address these issues and ensure that the solid minerals sector contributes significantly to Nigeria’s economic growth and development. By tackling illegal mining and improving regulation, the country can reap the benefits of its rich mineral resources.
He said: “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 $9 billion each year, with the only money coming from a 3 percent royalty paid by the few licensed miners.
“This development as you all know, hampers the country’s ability to maximize the benefits from its mineral resources.
“There is also the grave concern about the negative impacts of illegal mining which has led to insecurity and conflicts over control of mining sites and their resources. 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.”
The co-chairman of the joint Committees, Hon. Balele Aminu, emphasized the need to address the critical issue of national importance.
Hon. Aminu who doubles as Chairman, House Committee on Army, said: “the money that is going out from illegal mining is more than what is going out from oil sector and bunkering, so we need to come together, work together and see how we are going to assist our nation.”
The Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, represented by the Majority Leader, Hon. Julius Ihonbvere, emphasized that illegal mining in Nigeria has severe consequences for the nation’s economy. He acknowledged the gravity of the situation and the need for collective action.
He acknowledged that the outcome of the thorough investigation into the reported illegal activities and the Committee’s recommendations will inform the House’s necessary legislative actions. Additionally, he urged all stakeholders to collaborate in addressing this pressing issue, seeking their cooperation in finding a solution to the menace of illegal mining.
He said: “We are all aware that, illegal mining activity is a growing socio-economic challenge in Nigeria, which has brought innumerable economic losses to the economy of the nation, just as it has 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 who do not mean well for this country. Available reports indicate that an estimated 80% of mining in the North West region for example, is carried out illegally and the mining of large untapped mineral deposits in the area is the root of community violence. It is the same story in many parts of the nation.
“The House considers illegal mining as an economic sabotage and accords this investigative hearing a priority, especially because many communities with mineral deposits which should ordinarily be a blessing to them live in agonizing conditions, economically and socially, arising from years of neglect, and various deprivations and severe environmental degradation, air and water pollution, due to the activities of illegal miners. The impact of the unprecedented illegal mining across Nigeria is unprecedented and must be stopped.”
