Senate moves to save $9bn lost to illegal mining

The Senate is making efforts to address the over $9 billion Nigeria loses annually to illegal mining through a proposed law to establish the Nigerian Mines Rangers Service (NMR).

The bill proposing the NMR passed its second reading on the floor of the Senate in Abuja on Thursday.

It was sponsored by Sen. Onawo Mohammed-Ogoshi, representing Nasarawa-South Senatorial District.

The long title of the bill reads, “A bill for an Act to Establish Nigerian Mines Rangers Service (NMR) to Prevent, Combat Illegal Mining, Artisanal Mining and for Other Related Matters, 2024.”

Senators contributing to the debate highlighted the connection between illegal mining and banditry, particularly in the North-West geopolitical zone, noting that using rangers to curb illegal mining activities would also indirectly help combat banditry.

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For instance, former Sokoto State Governor, Sen. Aminu Tambuwal (PDP, Sokoto-South), informed the Senate that some bandits had started out by providing security to illegal miners and now terrorize innocent citizens daily.

He cited the frequency of attacks by bandits in the zone and across the country, explaining that the situation in the North was exacerbated by widespread illegal mining operations.

Tambuwal stated, “Why am I supporting this bill? The North-West and other parts of the North and Nigeria are infested by banditry.

“There is a connection between illegal mining and this banditry. So, this is a two-way bill that will tackle both illegal mining and banditry.

“Unless we tackle banditry, we may not be able to fully harness the economic advantages of mining.

“If we tackle illegal mining using this bill, it will also help to improve our revenue and the economic well-being of our people.

“I wholeheartedly support the second reading of this bill.”

Last July, a Committee of the House of Representatives on Solid Minerals Development discovered that Nigeria loses over $9 billion annually to illegal mining.

The committee, chaired by Hon. Gaza Jonathan, conducted a public hearing on “illegal mining activities, under-reporting of extractive products by mining and quarry license operators, utilization of financial interventions in the Nigerian solid minerals sector amounting to trillions of naira, and amendments to the Nigerian Minerals and Mining Act and the Nigeria Solid Minerals Development Company establishment bill.”

Jonathan, addressing the opening of the public hearing, had said, “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.”

Contributing to Thursday’s debate, former Senate Whip, Sen. Orji Uzor Kalu (APC, Abia-North), suggested that the rangers should be armed; otherwise, their efforts would be futile.

He argued that there was no point in establishing an organization to fight miners who were heavily armed when the NMR would be unarmed.

Senator Kalu also emphasized the economic importance of mining, describing it as the alternative to crude oil for Nigeria’s future. He estimated the current losses from illegal mining at $15.9 billion yearly.

“These rangers will help combat illegal miners and bandits.

However, let’s include the carrying of arms in the bill to strengthen their operations.

Mining is an important revenue source; it’s critical to Nigeria’s future development as crude oil is gradually vanishing,” he added.

Deputy Senate President, Sen. Barau Jibrin, presided over Thursday’s plenary.