Nigeria loses $9bn yearly to illegal mining, Rep panel reveals

The house of representatives committee on solid minerals development revealed that Nigeria loses $9 billion annually to illegal mining.

The Chairman of the committee, Jonathan Gbefwi  who spoke on Monday at a public hearing organised to investigate illegal mining in the solid mineral sector said illegal mining poses “substantial risks” to the nation’s economy, environment, and security.

“The unregulated exploitation of our natural resources jeopardises the sustainability of the mineral sector, leading to environmental degradation and revenue loss that could otherwise benefit our communities and nation as a whole,” he said.

“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 $9billion 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.”

Gbefwi said there is “grave concern” about the negative impacts of illegal mining which has led to insecurity and conflicts over control of mining sites and their resources.

He said the conflicts have escalated into violence, exacerbating existing political and social tensions in affected communities which has resulted in limited data availability and inadequate measures to control this illicit practice

Tajudeen Abbas, speaker of the house, while declaring the public hearing open, said an estimated 80 percent of mining in the north-west is done illegally.

Represented by Julius Ihonvbere, the majority leader of the house, Abbas said illegal mining is