The House of Representatives Committee on Solid Minerals Development has revealed that Nigeria loses $9 billion (N14,569,740,000,000) annually due to illegal mining activities across the country.
Speaking at a public hearing on Monday, July 15, 2024, the committee chairman, Jonathan Gbefwi highlighted the substantial risks illegal mining poses to the nation’s economy, environment, and security.
Mr Gbefwi said it is important to note that the unregulated exploitation of Nigeria’s natural resources has continued to jeopardise the sustainability of the mineral sector and thereby lead to environmental degradation and revenue loss.
Stating that such exploitation could otherwise benefit communities across Nigeria, Mr Gbefwi called for strategic actions to address the issue.
He also said that it is pertinent that Nigeria’s solid mineral sector operates within the already mapped-out legal framework that would protect the nation’s natural resources for future generations.
He said, “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 three per cent 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.”
Challenged faced by Nigeria’s mineral sector
The lawmaker, in addition, pointed out that limited data availability and inadequate measures have hindered efforts aimed at controlling illegal mining.
Also speaking, the Speaker of the House of Representatives, Tajudeen Abbas, underscored the severity of the issue while declaring the public hearing open.
Abbas said that an estimated 80 per cent of mining in the North West region of the country is conducted illegally.
