Daud Olatunji
The Chairman of the House of Representatives Committee on Solid Minerals, Jonathan Gbefwi, has revealed that Nigeria is losing approximately $9 billion each year due to illegal mining activities.
Gbefwi made this disclosure on Monday during an investigative hearing organised by the committee in Abuja.
He lamented that only 3 percent of royalties from licensed miners are being paid into government coffers, highlighting the significant financial losses to the nation.
At the hearing, the Chief of Defence Staff, General Christopher Musa, shocked lawmakers and industry stakeholders by stating that illegal miners are highly connected and often boast about their influence.
He added that the Nigerian Army has arrested 387 individuals linked to illegal mining activities.
Gbefwi emphasised the detrimental impact of illegal mining on the country’s economy, noting, “The parliament is deeply worried about the loss of revenue through unregulated and illicit mining operations.
The Federal Government disclosed that unlawful mining costs the country $9 billion each year, with only a 3 percent royalty from licensed miners contributing to government revenue.”
The public hearing aims to investigate various issues, including illegal mining activities, under-reporting by mining and quarry licence operators, and the utilisation of financial interventions in the solid minerals sector.
The hearing also addresses the Nigeria Minerals and Mining Act (Amendment Bill) and the Nigeria Solid Minerals Development Company (Establishment Bill).
Gbefwi, representing Karu/Keffi/Kokona Federal Constituency in Nasarawa State, stressed the urgency of addressing illegal mining.
He stated,”the unregulated exploitation of our natural resources jeopardizes the sustainability of the mineral sector, leading to environmental degradation and revenue loss. It is imperative that we take decisive steps to ensure our solid mineral sector operates within the law, protecting our resources for future generations.”
Air Vice Marshal Nnaemeka Ilo, representing the Chief of Defence Staff, highlighted the challenges in combating illegal mining, including the involvement of elites.
He stated, “When we catch these foreigners, they often claim to have connections. Sometimes, after handing them over, they are released shortly after.”
Ilo called for stricter enforcement and tougher sanctions on those involved in illegal mining.
He noted that poverty and lack of education contribute to the prevalence of illegal mining, as many individuals involved are uneducated and come from impoverished backgrounds.
Colonel Tajudeen Lamidi, representing the Nigerian Army, confirmed the arrest of 387 individuals connected to illegal mining activities.
Speaker of the House of Representatives, Tajudeen Abbas, represented by House Leader Professor Julius Ihonvbere, described illegal mining as a growing socio-economic challenge.
He noted its devastating impact on ecosystems, increased poverty levels, and severe environmental degradation in mining communities.
He said “various mining communities in Nigeria live in agonizing conditions due to years of neglect and severe environmental degradation caused by unsafe mining practices.
“Farmlands, crops, and economic trees are destroyed by mining activities, reducing their value to the residents.”
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