Business is booming.

Nigeria earns 3% royalty, loses $9bn annually to illegal mining

By George George Idowu

Chairman of the House Committee on Solid Mineral, Hon. Jonathan Gaza has revealed that Nigeria loses $9 billion annually to illegal mining activities.

He said that despite this significant loss, the country only earns a 3 per cent royalty from licensed miners.

This was disclosed on Monday, during a public hearing organized by the House Committee on Solid Minerals Development.

Hon. Gaza emphasized that illegal mining undermines the nation’s ability to benefit from its mineral resources.

He pointed out that these activities contribute to insecurity and conflicts over mining sites, exacerbating political and social tensions in affected communities.

In the same vein, Chief of Defence Staff, General Christopher Musa, noted that illegal miners often have high-level connections, making enforcement challenging.

He highlighted the involvement of foreigners and local elites in these activities, which further complicates efforts to curtail illegal mining.

The Nigerian Army announced the arrest of 387 individuals connected to illegal mining. Colonel Tajudeen Lamidi, representing the Army, detailed the arrests and highlighted the collaboration between the Army and other security agencies to tackle illegal mining.

Director of Operations, Air Vice Marshal Nnaemeka Ignatius Ilo, stressed the need to strengthen the regulatory framework and equip agencies involved in monitoring mining activities.

He suggested a temporary ban on mining to reassess and improve regulatory measures.

On the part of the Speaker of the House, Tajudeen Abbas, represented by Professor Julius, emphasized the severe socio-economic impacts of illegal mining on Nigerian communities.

He called for decisive action to address these issues, including the examination of the Nigeria Minerals and Mining Act and the establishment of the Nigeria Solid Minerals Development Company.

 

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