By Fatima Saka
Chairman of the House of Representatives Committee on Solid Minerals, Hon. Jonathan Gaza, has stated that Nigeria loses approximately $9 billion annually to illicit mining activities.
This was disclosed by Honorable Jonathan Gaza on Monday in Abuja during an investigative hearing on illicit mining, under-reporting of yields by mining and quarry license holders, and the utilization of financial interventions in Nigeria’s solid minerals sector, amounting to trillions of naira.
The hearing also aimed to deliberate on the Nigeria Minerals and Mining Act (amendment bill) and the Nigeria Solid Minerals Development Company (establishment bill). Gaza underscored the necessity for stringent regulation and enhanced revenue generation in the solid minerals sector.
He highlighted that a mere 3% of royalties are remitted by a select few licensed miners, while an alarming 80% of mining activities in the North West region are conducted unlawfully. This illicit mining is fueling communal strife and impeding the country’s economic potential.
The committee is dedicated to addressing these issues and ensuring that the solid minerals sector makes a substantial contribution to Nigeria’s economic advancement. By combatting illicit mining and enhancing regulatory measures, the nation can fully harness the benefits of its abundant mineral resources.
Hon. Gaza expressed, “The leadership of the 10th House of Assembly has deemed it necessary and a matter of responsibility to conduct these investigative hearings to promote transparency, accountability, public engagement, policy formulation, and identify challenges and solutions that will ultimately lead to the revitalization of our solid mineral sector.
“As we are all aware, illicit mining poses significant risks to our nation’s economy, environment, and security. The unregulated exploitation of our natural resources jeopardizes the sustainability of the mineral sector, resulting in environmental degradation and revenue loss that could otherwise benefit our communities and the nation at large.
“It is imperative that we take urgent and decisive action to address this issue and ensure that our solid mineral sector operates within the confines of the law, safeguarding our natural resources for future generations.
“Moreover, as representatives of the people, the parliament is deeply concerned about the revenue loss due to unregulated and illicit mining operations, with the Federal Government disclosing that illegal mining costs the country $9 billion annually, with only a 3 percent royalty being paid by the limited number of licensed miners.
“This development, as you are all aware, hinders the country’s ability to optimize the benefits from its mineral resources.
“There is also considerable apprehension regarding the adverse effects of illicit mining, which has engendered insecurity and conflicts over control of mining sites and their resources. These conflicts have escalated into violence, exacerbating existing political and social tensions in affected communities, resulting in limited data availability and inadequate measures to curb this illicit practice.”
The co-chairman of the joint Committees, Hon. Balele Aminu, stressed the importance of addressing this critical national issue.
Hon. Aminu, who also serves as Chairman of the House Committee on Army, remarked, “the financial outflow from illicit mining surpasses that of the oil sector and bunkering, underscoring the need for concerted efforts 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 illicit mining in Nigeria has severe repercussions for the nation’s economy. He acknowledged the gravity of the situation and the imperative for collective action.
He acknowledged that the findings of the comprehensive investigation into the reported illicit activities and the Committee’s recommendations will guide the House’s requisite legislative actions. Additionally, he urged all stakeholders to collaborate in addressing this pressing issue, soliciting their cooperation in finding a resolution to the scourge of illicit mining.
He stated, “We are all cognizant that illicit mining is an escalating socio-economic challenge in Nigeria, causing immense economic losses to the nation’s economy, while also heightening poverty levels, particularly among subsistence farmers who rely solely on environmental resources for sustenance.
“Nigeria is abundantly endowed with solid minerals, which should bring prosperity to the country and its citizens, but this wealth is largely pilfered by malevolent elements who do not have the nation’s best interests at heart. Reports indicate that an estimated 80% of mining activities in the North West region, for instance, are carried out illicitly, and the extraction of vast untapped mineral reserves in the area is the root cause of communal unrest. This narrative is replicated in numerous parts of the nation.
“The House views illicit mining as an act of economic subversion and accords this investigative hearing paramount importance, particularly because many communities with mineral deposits, which should be a source of blessing to them, endure distressing conditions economically and socially, stemming from years of neglect, deprivation, and severe environmental degradation, air, and water pollution due to the activities of illicit miners. The repercussions of widespread illicit mining across Nigeria are profound and must be halted.”
