Reps panel: Nigeria loses $9bn yearly to illegal mining

The house of representatives committee on solid minerals development says Nigeria loses $9 billion annually to illegal mining.

Jonathan Gbefwi, chairman of the committee, spoke on Monday at a public hearing organised to investigate illegal mining in the solid mineral sector.

The lawmaker said illegal mining poses “substantial risks” to the nation’s economy, environment, and security.

“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,” he said.

“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 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.”

Gbefwi said there is “grave concern” about the negative impacts of illegal mining which has led to insecurity and conflicts over control of mining sites and their resources.

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

‘80% OF MINING IN NORTH-WEST DONE ILLEGALLY’

Tajudeen Abbas, speaker of the house, while declaring the public hearing open, said an estimated 80 percent of mining in the north-west is done illegally.

Represented by Julius Ihonvbere, the majority leader of the house, Abbas said illegal mining is a “growing socio-economic challenge in Nigeria affecting the ecosystems and increasing poverty levels, 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,” Abbas said.

“According to reports, an estimated 80% of mining in the north-west region is carried out illegally and the mining of largely untapped mineral deposits in the area is at the root of community violence.

“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.”

Abbas said the impact of the “unprecedented illegal mining” across Nigeria has been devastating as farmlands and crops.

He said these mining activities destroy economic trees and reduce their benefit and values to the residents.

Abbas said the parliament would take “decisive steps” towards addressing nefarious mining practices and noncompliance with set standards in the solid minerals sector.