PROF. ANTHONY EZE

Despite government’s efforts to diversify the economy, earn more foreign exchange and create jobs, reports of illegal gold mining and other solid minerals across many states of the federation, are very disturbing. Data from the Ministry of Solid Minerals and Development show that illegal gold mining and other solid mineral activities have continued to thrive in spite of government’s repeated threat to prosecute culprits.

Statistics also show that between 2014 and 2015, Nigeria lost an estimated nine billion dollars to illegal mining across the country. Besides, geological survey estimates that some eighteen thousand kilograms of gold, valued at nearly one billion dollars was smuggled out of Nigeria between 2018 and 2019.

Available reports from the National Bureau of Statistics (NBS) show that the mining sector has the potential to contribute 23 per cent to the nation’s GDP. Only recently, some Chinese were caught in Osun for illegal gold mining, which was said to have polluted the Osun River with poisonous metals, thereby making it unsafe for human consumption. While in Zamfara, 250 illegal miners were arrested by security agencies.

In 2018, illegal mining in the Federal Capital Territory (FCT) triggered earth tremor in Mpape and Maitama districts of Abuja. It is sad that while the government has expressed its commitment to diversifying the economy, illegal mining is booming in some parts of the country. The government should therefore see illegal mining as an obstacle to its diversification drive.

According to reports, gold from Nigeria, when properly refined and purified, could be as good as any gold from any country in the world. There is therefore need for adequate legislation on mining. Due to illegal mining, the sector’s contribution to the Gross Domestic Product (GDP) has dwindled from about five per cent in the sixties and seventies to less than one per cent currently.

Other African countries, like South Africa and Botswana, are earning much more from the solid mineral sector, contributing 45 per cent and 25 per cent respectively, to Botswana and South Africa’s GDP.

Beyond the lamentations over illegal mining, the Federal Government should come up with concrete policies that will adequately regulate the mining sector and punish illegal miners. The government should set the rules guiding the exploitation of solid minerals in both states and local governments.

There is need to review the nation’s mining laws. Such a review should take into consideration the participation of state governments, private persons and genuine foreign interests who should be duly licensed by the appropriate authorities. Four years ago, the Federal Government declared that state governments could explore and exploit mineral resources in their domains.

Hitherto, that right was the exclusive right of the Federal Government. The 1999 Constitution (as amended) in item 39 of the Second Schedule states: “Mines and minerals, including oil fields, oil mining, geological surveys and natural gas, belong to the Federal Government.” In addition, the Nigerian Minerals Law of 1999 provides that ownership and control of all minerals in Nigeria is vested in the Federal Government.

Despite these laws, illegal miners are still exploiting the nation’s solid minerals sector. With the volatility in global oil market induced by the coronavirus pandemic, this is the best opportunity to give priority attention to the non-oil sector and earn more foreign exchange. With over 44 confirmed mineral resources across the country, the government should not delay any longer to develop them as another source of revenue for the country.

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