…says only 3% royalty paid by few licensed miners
…80% of mining in North West region carried out illegally, root of community violence – Speaker Abbas
Chairman, House of Representatives Committee on Solid Minerals, Hon. Jonathan Gaza, on Monday disclosed that Nigeria loses about $9 billion in revenue yearly to illegal mining activities across the country.
He disclosed this in Abuja during the opening of an investigative hearing into illegal mining activities, under-reporting wins (extract E-Products) by mining and quarry license operators, utilization of financial interventions in the Nigerian solid minerals sector amounting to trillions of naira within the solid mineral sector and also the Nigeria Minerals and Mining Act (amendment bill) and Nigeria Solid Minerals Development Company (establishment bill), respectively.
He said: “The leadership of the 10th House of Assembly has found it expedient and a sense of duty to carry out these investigative hearings to necessitate transparency and accountability, public participation, policy formation and identify challenges and solutions that will ultimately lead to the revamping of our solid mineral sector.
“As we are all aware, illegal mining poses substantial risks to our nation’s economy, environment, and security. The unregulated exploitation of our natural resources jeopardizes the sustainability of the mineral sector, leading to environmental degradation and revenue loss that could otherwise benefit our communities and nation as a whole.
“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 $9 billion 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.
“There is also the grave concern about the negative impacts of illegal mining which has led to insecurity and conflicts over control of mining sites and their resources. These conflicts have escalated into violence thereby exacerbating existing political and social tensions in affected communities which has resulted in the limited data availability and inadequate measures to control this illicit practice.”
According to him, the public hearing serves as a valuable platform for collecting insights, information, and recommendations from stakeholders, experts, and affected communities.
“By attentively listening to their testimonies and perspectives, we can gain a deeper understanding of the challenges posed by illegal mining and develop effective strategies to combat this illicit activity. I call upon all participants to engage in constructive dialogue, share their experiences, and offer practical solutions that will guide our legislative efforts towards regulating the solid mineral sector effectively.”
In his remarks, the co-chairman of the joint Committees, Hon. Balele Aminu, underscored the need to address the critical issue of national importance.
“Last week I found myself in another Committee discussing about oil theft when I got submissions from various professional organizations I think we need support, prayers from Nigerians. This is the most critical aspect today, we are looking for revenue, there’s revenue here.
“We are looking for money, people are saying that we don’t have money in Nigeria, there’s money in the mining sector but the challenge is enormous. We need the support of Nigerians through memos, inputs and other things.”
Hon. Aminu who doubles as Chairman, House Committee on Army, observed that: “the money that is going out from illegal mining is more than what is going out from oil sector and bunkering, so we need to come together, work together and see how we are going to assist our nation.”
While declaring the hearing open, Speaker Tajudeen Abbas, who was represented by the Majority Leader, Hon. Julius Ihonbvere, averred that Illegal mining in Nigeria has huge implications for the economy of our nation.
While noting that the outcome of the comprehensive investigation into the reported illegal activities and the Committees’ recommendations will guide the House in taking necessary legislative actions, he solicited the cooperation of all the Stakeholders in addressing the menace.
He said: “We are all aware that, illegal mining activity is a growing socio-economic challenge in Nigeria, which has brought innumerable economic losses to the economy of the nation, just as it has increased poverty level, 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 who do not mean well for this country. Available reports indicate that an estimated 80% of mining in the North West region for example, is carried out illegally and the mining of large untapped mineral deposits in the area is the root of community violence. It is the same story in many parts of the nation.
“The House considers illegal mining as an economic sabotage and accords this investigative hearing a priority, especially because many communities with mineral deposits which should ordinarily be a blessing to them live in agonizing conditions, economically and socially, arising from years of neglect, and various deprivations and severe environmental degradation, air and water pollution, due to the activities of illegal miners. The impact of the unprecedented illegal mining across Nigeria is unprecedented and must be stopped.”
