The Chairman of the House of Representatives Committee on Solid Minerals, Jonathan Gbefwi, revealed on Monday that illegal mining activities are costing Nigeria approximately $9 billion annually. During an investigative hearing in Abuja, Gbefwi also noted that only 3% of royalties are paid into government coffers by the few licensed miners operating legally.
At the hearing, Chief of Defence Staff General Christopher Musa highlighted the extensive connections of illegal miners, stating that the Nigerian Army has arrested 387 individuals linked to illegal mining activities.
Gbefwi expressed deep concern over the economic impact of illegal mining, which undermines the country’s ability to maximize its mineral resources. He emphasized the urgent need to address unregulated and illicit mining operations, which lead to significant revenue loss and environmental degradation.
“The parliament is deeply worried about the loss of revenue through unregulated and illicit mining operations. The Federal Government discloses that unlawful mining costs the country $9 billion each year, with only 3% royalty paid by the few licensed miners,” Gbefwi stated.
He added that the hearing aims to investigate illegal mining activities, under-reporting by mining operators, and the utilization of financial interventions in the solid minerals sector, which amounts to trillions of naira.
Gbefwi, representing the Social Democratic Party from Karu/Keffi/Kokona Federal Constituency in Nasarawa State, stressed the importance of regulating the exploitation of natural resources to prevent environmental damage and ensure sustainable benefits for communities and the nation.
Air Vice Marshal Nnaemeka Ilo, representing the Chief of Defence Staff, highlighted the involvement of elites in illegal mining and the challenges faced in prosecuting offenders. He pointed out that the existing framework guiding mining in Nigeria, although good, needs strengthening to effectively combat illegal activities.
Ilo called for decisive actions and tougher sanctions against those involved in illegal mining, noting that poverty and lack of education in affected areas contribute to the problem. “Anybody caught in this illegal mining must be dealt with decisively and examples should be made publicly,” he urged.
Colonel Tajudeen Lamidi, representing the Nigerian Army, confirmed that 387 individuals have been arrested in connection with illegal mining.
House Leader Professor Julius Ihonvbere, representing Speaker Tajudeen Abbas, described illegal mining as a growing socio-economic challenge in Nigeria. He highlighted the adverse effects on ecosystems, increased poverty levels among peasant farmers, and severe environmental degradation caused by unsafe mining practices.
“The impact of unprecedented illegal mining across Nigeria has been devastating. Farmlands, crops, and economic trees are destroyed, reducing their benefits and values to the residents,” Ihonvbere stated.
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