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The Chairman, House of Representatives Committee on Solid Minerals, Jonathan Gbefwi, on Monday disclosed that illegal mining activities in Nigeria are costing the country about $9bn annually.
This is just as the lawmaker lamented that only 3 per cent royalty gets paid into government coffers by the few miners licenced to operate legally across the country.
At the investigative hearing organised by the committee in Abuja, Chief of Defence Staff, Gen Christopher Musa shocked lawmakers and industry stakeholders with his claim that illegal miners are highly connected and often boast of the same everywhere they go.
The CDS added that men of the Nigerian Army have so far, arrested 387 individuals linked with illegal mining.
Speaking at the event, Gbefwi stated that illegal miners have worked against the economy of the country, preventing her from making the most of its mineral resources.
He said, ” 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 per cent royalty paid by the few licensed miners.
“This public hearing is aimed at investigating illegal mining activities, under-reporting wins (extract e-Products) by mining and quarry license operators, utilisation of financial interventions in the Nigerian solid minerals sector amounting to trillions of naira within the solid mineral sector and also the Nigeria Minerals and Mining Act (Amendment Bill) and Nigeria solid Minerals Development Company (establishment bill) respectively.
Gbefwi, a member of the Social Democratic Party representing Karu/Keffi/Kokona Federal Constituency, Nasarawa State, also noted that “The unregulated exploitation of our natural resources jeopardises 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.”
On why illegal mining continues to thrive, Air Vice Marshal, Nnaemeka Ilo who represented the CDS said, “The involvement of the elites in it, we can’t tell, but we know that most of the time when we catch these foreigners, they will tell us that they have connections. I don’t want to say some things, but sometimes you hand these people over and the next thing they’re released.
“Talking of illegal mining, I’m 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 the statistics that we have, we notice that, first of all, the framework guiding mining in Nigeria is very, very good. It needs to be strengthened. Why do I say so, sir?
“In 2018 or so, during the last administration, there was a ban on illegal mining in South Africa, South Africa and Nigeria, which even established a gold mine zone. Despite that ban, mining licenses were being issued to people to mine in that zone. So the strengthening of the institutional framework is very key.”
He further called for tough sanctions on those involved in the act, saying, “Anybody caught in this illegal mining must be dealt with decisively and examples should be made for others to know publicly. The third aspect we noted is poverty. In these areas where this illegal mining takes place, the people are poor. Virtually, lack of education is also part of it. Most of them that we get, have no formal education.”
Also at the hearing, the representative of the Nigerian Army, Colonel Tajudeen Lamidi said that the Nigerian Army has arrested 387 individuals in connection with illegal mining.
At the investigative hearing, Tajudeen Abbas who was represented by the House Leader, Professor Julius Ihonvbere described illegal mining as a growing socio-economic challenge in Nigeria, adding that it has led to the loss of ecosystems and increased poverty levels, especially among peasant farmers.
“A disturbing issue, which makes this investigative hearing very critical is the fact that various mining communities in Nigeria live in agonising conditions, economically and socially, arising from years of neglect, and various deprivations and severe environmental degradation, air and water pollution, arising from unsafe mining practices by illegal miners.
“The impact of the unprecedented illegal mining across Nigeria has been devastating as farmlands, crops and economic trees are not only destroyed by mining activities but reduce their benefit and values to the residents,” he said.
