•says trillions lost to illegal miners
•FEC approves N2.5b for integrated solutions
•320 illegal miners arrested, 150 facing prosecution, 4 foreigners convicted
The Federal Government has faced challenges in fully controlling gold mining, particularly in northern Nigeria, due to cultural, political and social sensitivities despite the government’s constitutional authority over the sector
Minister of Solid Minerals Development, Dele Alake, disclosed this while briefing journalists on the outcome of the Federal Executive Council (FEC) meeting, presided over by President Bola Tinubu at the Presidential Villa, Abuja, on Monday.
He noted that illegal mining has cost the nation trillions of naira but revealed that the council has approved a new initiative to enhance regulation and curb revenue losses in the sector.
As part of the initiative, the government will deploy satellite technology to monitor key mining sites and track activities in real-time.
Alake further stated that the Federal Government prefers to collaborate with state governments in mineral-rich areas to prevent unregulated mining operations and ensure proper oversight.
Alake acknowledged that while mineral resources are exclusively under the jurisdiction of the federal government, states continue to exert influence over mining activities, often leading to conflicts.
“There is a sensitivity given the peculiarity of our environment – political, social, and cultural – which we recognize. I will not be the one to heat up the polity unnecessarily,” Alake said.
He noted that his ministry has opted for dialogue and collaboration with state governors rather than confrontation.
According to him, many governors were initially unaware of the constitutional framework governing mining but have now been engaged through discussions facilitated by the Nigeria Governors’ Forum (NGF).
“I have met the governors. I’ve had a meeting with 32 of them at their secretariat, organized by the chairman of the Governors’ Forum, the Governor of Kwara. Some of them feigned ignorance of this constitutional separation of powers, even though they have attorney generals,” he stated.
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Despite the legal clarity that mineral resources belong to the federal government, Alake explained that states still exercise some level of control due to their ownership of land under the Land Use Act.
Miners are required to obtain consent from host communities before being granted federal mining licenses.
To ease tensions and encourage state participation, the federal government has offered states an alternative through Special Purpose Vehicles (SPVs) – state-owned companies that can apply for mining licenses.
“I announced to the governors that they could form an SPV to apply for a mining license in their own state, and I will approve it. This way, they feel a sense of belonging, and it is a win-win situation for the federal government, the states, and host communities,” Alake said.
He revealed that several states have embraced this approach, and President Bola Tinubu has given him the authority to expedite approvals for state-owned mining operations.
Alake affirmed that the government has lost trillions of naira to unregulated and illegal mining activities across the country.
To end this haemorrhage, the FEC has approved N2.5 billion for the procurement of an integrated solution framework to combat illegal and unregulated mining activities across the country.
The money is for the procurement of an integrated solution framework to combat illegal and unregulated mining activities across the country.
He said the approval would fund the deployment of satellite surveillance technology to monitor mining activities in real-time.
“We are procuring satellite equipment that will be installed in strategic locations nationwide. This will allow us to have a visual, real-time view of mining operations across the country, enabling us to track extraction volumes, monitor truck movements, and assess security situations at mining sites”, he stated.
According to Alake, the move is part of broader efforts to tackle revenue leakages and curb the illegal extraction and exportation of mineral resources.
The minister explained that the government has been implementing a two-pronged approach, persuasive and coercive, to address illegal mining.
Under the persuasive strategy, informal and artisanal miners have been encouraged to form cooperatives to legalize their operations.
“We have successfully persuaded over 300 illegal mining groups to form cooperative societies. Now, they are fully legalized, structured, and contributing meaningfully to the nation’s revenue” Alake revealed.
By formalizing their activities, he added, these miners can access financial support from banks and avoid clashes with security agencies.
However, for those who refuse to comply, the government has deployed coercive measures, including law enforcement through the Mines Marshals, a special unit created to tackle illegal mining.
“For those who are recalcitrant and refuse to comply, the Mines Marshals have been making arrests, prosecuting offenders, and securing convictions. Several illegal operators, including foreigners, have been apprehended”, he said.
Despite the success of these initiatives, Alake said the government recognized the need to introduce advanced technology to strengthen monitoring and enforcement.
“The newly approved satellite surveillance system will provide a centralized operations center, including a monitoring screen in my office. With just a click of a button, we will be able to zoom in on any mining site in the country and observe activities in real time”, he explained.
The N2.5 billion cost of the project, he noted, had already been reviewed downward to ensure cost efficiency.
Talking to the scale of losses in the sector, Alake also revealed that Nigeria has lost trillions of naira to unregulated and illegal mining activities.
He described the scale of losses as “mind-boggling”, attributing them to underreporting, illegal operations, and the vastness of Nigeria’s territory, which makes monitoring difficult.
“A very elementary, non-scientific estimate we conducted in 2023 immediately after we assumed office revealed trillions of naira lost through unregulated, under-reported, and unlicensed mining activities,” he said.
The minister lamented that gold, one of Nigeria’s most valuable mineral resources, has been particularly affected by illegal mining, with the country losing far more than it has officially gained.
“You should not ask how much the nation has gotten from gold; you should ask how much the nation has lost in gold,” Alake stated. “It is humongous, unheard of.”
To tackle the problem, the federal government is set to deploy satellite surveillance technology within the next month to monitor mining activities across the country. The minister explained that this initiative would help plug revenue leakages and enhance security by tracking operations even in remote locations.
“All we have to do is introduce technological gadgets that can enable us to see what’s going on, even in the most remote parts of the country. Once we identify revenue leakage and plug it, the revenue starts flowing into government”, he explained.
Alake also announced progress in the establishment of the Nigerian Mining Corporation, a state-backed but privately driven entity aimed at revitalizing the sector.
According to him, President Tinubu has approved the appointment of Martin Imanite, a mining finance expert from Australia, as the corporation’s CEO.
“We headhunted him from Western Australia, one of the biggest mining regions in the world. He has experience working with major global players, and he will drive this new initiative,” Alake said.
The corporation’s equity structure will ensure minimal government interference, with 50% controlled by the private sector, 25% by the federal government, and 25% open to Nigerian citizens.
“It is designed so that after us, no government can interfere or inject political manipulation into its operations,” Alake explained.
Addressing speculations about a Solid Minerals Development Bank, Alake clarified that the government has no plans to establish one.
Instead, he has challenged private sector players to take the lead in setting up a specialized financial institution to support mining operations.
“I never announced that the government will establish a Solid Minerals Development Bank. I threw the challenge to the private sector because once you allow government to set it up, you invite political interference”, he said.
According to him, private sector ownership will ensure efficient management and fair access to funding for miners, free from favoritism or political influence.
On security concerns, Alake noted that states must collaborate with federal authorities in addressing illegal mining and related criminal activities.
He disclosed that the federal government has been working closely with the National Security Adviser (NSA), Mallam Nuhu Ribadu, and the Ministry of Defense to curb illegal mining operations.
“There have been cases of interference by states in mining activities. If there is an infraction in a state, the governor must consult us before taking action. We investigate and either act directly or authorize the state to act under federal cover,” he explained.
The minister also highlighted recent efforts to combat illegal mining, revealing that 320 illegal operators have been apprehended in recent months.
Out of these, about 150 are currently facing prosecution, while nine have been convicted, adding that four foreign nationals involved in illegal mining have been prosecuted and convicted.
Alake assured that the federal government remains committed to enforcing regulations while fostering cooperation with states to ensure the sustainable and lawful development of the mining sector.
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