AdminBy Blessing Nweke
Illegal mining has persisted in Nigeria for decades, primarily targeting gold, lithium, petroleum and other mineral resources. Despite its vast wealth, Nigeria has struggled to harness its resources effectively, largely due to illegal mining activities that undermine the formal sector and deprive the nation vital revenue.
From independence in 1960 to the present day, unregulated mining has grown into a significant socio-economic and environmental challenge. This issue is intertwined with historical neglect, weak regulatory frameworks, corruption, poverty and global demand for minerals. Moreover, Nigeria’s dependence on crude oil has diverted attention from the mining sector, leaving a regulatory vacuum that illegal miners have exploited.
Join our WhatsApp ChannelNigeria is endowed with an array of mineral resources, including precious metals (gold and silver), industrial minerals (limestone and gypsum), and energy resources (petroleum and natural gas). These resources are distributed across the country, with states such as Zamfara, Osun, Nasarawa, and the Niger Delta being particularly rich in minerals.
Illegal mining thrives often involves small-scale miners operating with elementary tools. In some cases, it also involves organised criminal networks smuggling minerals to international markets. The minerals extracted through this process are often sold at undervalued rates, depriving Nigeria of substantial revenue.
At the time of Nigeria’s independence in 1960, mining was one of the leading sectors driving the nation’s economy. Minerals like tin, coal, and columbite were major exports, contributing significantly to government revenue. Tin mining in Jos Plateau, for example, played a central role in providing foreign exchange and employment. However, the discovery of crude oil in the late 1950s and its commercial exploitation in the 1960s shifted the government’s focus. Oil quickly became the mainstay of the economy, and the mining sector was relegated to the background.
By the 1980s, the formal mining sector had almost collapsed due to neglect and mismanagement. The Nigerian Mining Corporation (NMC), established to oversee mining activities, struggled with underfunding and inefficiency. Corruption further eroded its effectiveness. With the decline of formal mining, artisanal miners filled the gap, often operating without licenses or oversight. These miners lacked the technical expertise and resources for sustainable practices, leading to significant environmental degradation.
During this period, illegal mining focused on gold, columbite, and gemstones, particularly in northern states such as Kaduna, Niger, and Zamfara. International buyers, particularly from Asia and Europe, began sourcing these minerals through informal channels, fuelling the demand for more.
The turn of the millennium saw increased attention to the challenges posed by illegal mining. By this time, it had become clear that unregulated mining was causing significant economic losses and environmental damage. Certain regions, such as Zamfara, had become notorious for illegal gold mining, which attracted both local and international attention. The region’s gold rush in the 2000s not only intensified illegal activities but also led to severe environmental and health crises, including the infamous lead poisoning incident in 2010 that claimed hundreds of lives.
As global demand for critical minerals such as lithium surged in the 2020, lithium deposits in Nasarawa and Kwara States became a focal point for illegal mining activities, driven by the growing need for electric vehicle batteries. Artisanal miners extracted lithium in significant quantities. These operations were frequently facilitated by international buyers who exploited weak regulatory systems to source the mineral at undervalued prices.
In April 2024, four Chinese were arrested by the Mining Marshals of the Nigeria Security and Civil Defence Corps (NSCDC) at a site where lithium is illegally mined and sold, at Karu Local Government Area of Nasarawa State. Also, in May 2024, a joint team of soldiers and police arrested 32 people, including two Chinese nationals, for illegally mining lithium in Kishi, Oyo State.
The economic losses associated with these activities are staggering. Jonathan Gbefwi, the chairman, House of Representative Committee on Solid Minerals, disclosed in 2024 that Nigeria losses about $9bn annually to illegal mining. This includes direct losses from the undervalued sale of minerals and indirect losses from uncollected taxes and royalties. The diversion of resources from the formal economy to the black market undermines the government’s ability to generate revenue and invest in critical sectors. According to the National Bureau of Statistics, the Mining & Quarrying sector contributed 7.86% to the overall GDP in the first quarter of 2024, an increase from 6.73% in the same quarter of 2023. Despite these figures, the sector’s contributions to GDP remain marginal, accounting for just 0.77% of GDP in 2023.
The environmental consequences are equally severe. Land degradation is a common outcome, as mining activities often involve the clearing of forests and the removal of topsoil. This not only destroys ecosystems but also reduces the fertility of agricultural land, threatening food security in affected regions. Water contamination is another significant issue, particularly in areas where chemicals such as mercury and cyanide are used in mineral extraction. These substances leak into rivers and groundwater, posing serious risks to both human and animal populations.
Health crises are a recurring theme in regions affected by illegal mining. The lead poisoning outbreak in Zamfara remains one of the most tragic examples of the human cost of unregulated mining. Unsafe practices, combined with the lack of awareness about health risks, have left many communities vulnerable to chronic illnesses and premature deaths. In the Niger Delta, exposure to toxic fumes has contributed to a rise in respiratory diseases and other health problems. These health challenges place an additional burden on already overstretched healthcare systems, leaving affected communities in a state of perpetual vulnerability.
Illegal mining also poses significant security challenges. The proceeds from unregulated resource exploitation often fund criminal networks and insurgent groups as rightly mentioned by former governor of Edo State, Senator Adams Oshiomole, leading to increased violence and instability. In the Niger Delta, militant groups have used the profits from illegal oil bunkering to finance attacks on oil installations and government facilities. Similarly, in northern Nigeria, illegal mining has been linked to banditry and other forms of organised crime. The resulting insecurity hampers development efforts and creates a climate of fear and uncertainty for residents. A research published by Relief Web in June 2020, suggests that there is a sort of collaboration between some politically connected Nigerians and the Chinese corporations who illegally mine minerals especially gold and this drives banditry and conflict in the rural area where this illegal activity is taking place.
“Illegal mining leads to violent local conflicts in two ways in the North West. First, those funding the mining fight over control of the mine fields. These ‘sponsors’ are protected by some state governments, and act as if they’re above the law,” Dr Chris Kwaja, a Senior Researcher at Modibbo Adama University of Technology in Yola, Nigeria told the ENACT organised crime project.
READ ALSO: Tinubu Explains Why Nigeria Stopped Exporting Raw Gold, Lithium, Other Minerals
Over the years, successive Nigerian governments have attempted to address the challenges posed by these illegal activities, albeit with mixed results. Recognising the economic, environmental, and social costs of unregulated mining, various policies and initiatives have been introduced to curtail the activities of illegal miners and formalise the sector.
In the late 1990s and early 2000s, Nigeria began laying the groundwork for mining sector reform with the enactment of the Federal Minerals and Mining Act of 1999. This legislation aimed to create a legal framework for mining operations, emphasizing licensing, environmental standards, and safety measures. Despite its progressive provisions, the act faced significant enforcement challenges, as regulatory agencies lacked the capacity and resources to monitor mining activities effectively. Consequently, illegal mining continued to thrive, undermining the objectives of the reform.
In 2007, the Nigerian government introduced the Mineral and Mining Act as an updated legal framework to replace the 1999 legislation. This act sought to provide more robust mechanisms for regulating the mining sector, including the establishment of the Mining Cadastre Office (MCO). The MCO was tasked with granting and managing mining licenses and leases in a transparent manner. Additionally, the government created the Ministry of Mines and Steel Development to oversee the sector and implement policies aimed at formalising mining operations. Despite these efforts, the illegal mining industry persisted due to weak enforcement, corruption, and the complicity of some government officials.
In response to the growing crisis, the Buhari administration launched a renewed crackdown on illegal mining activities. One of the government’s key strategies was the establishment of the Presidential Artisanal Gold Mining Development Initiative (PAGMI) in 2019. PAGMI was designed to integrate artisanal miners into the formal economy by providing them with training, equipment, and access to formal markets. Through this initiative, the government aimed to reduce smuggling, improve revenue collection, and promote sustainable mining practices. While PAGMI has recorded some successes, including the formalisation of gold mining operations in states like Osun and Kebbi, the scale of illegal mining activities remains a significant challenge.
Beyond legislative reforms, the Nigerian government has also sought to address illegal mining through military interventions. In mineral-rich states such as Zamfara, Kaduna, and Niger, security forces have been deployed to dismantle illegal mining camps and arrest offenders. In some cases, these operations have led to the recovery of smuggled minerals and the disruption of trafficking networks. However, the militarised approach has been criticised for its short-term focus, as it often fails to address the underlying economic and social drivers of illegal mining.
At the regional level, Nigeria has engaged in collaborative efforts to combat cross-border smuggling of minerals. The Economic Community of West African States (ECOWAS) has facilitated discussions on harmonising mining regulations and strengthening border controls to curb the illicit trade of minerals. Despite these efforts, Nigeria’s porous borders and weak customs enforcement continue to pose significant challenges.
READ ALSO: Foreigners Perpetrating Illegal Mining Connected To ‘Powerful’ Nigerians – Military
During a Senate session recently, Senator Adams Oshiomhole alleged that some retired military personnel are in one way or the other involved in illegal mining and called for proper investigation. According to him, some military officers provide backing for foreign illegal miners.
If Nigeria would rise and fulfil its full potential, it has to intensify efforts in tackling illegal mining.
The involvement of foreign companies and nationals in this illegal activity brings to light the deep-rooted systemic and structural failure Nigeria is facing. These companies exploit weak enforcement mechanisms and the complicity of corrupt officials to engage in unregulated mining operations. These companies and individuals typically bypass official licencing procedures, smuggle minerals out of the country and evade taxes. One prominent case occurred in Zamfara State, where foreign companies were implicated in illegal gold mining activities that exacerbated insecurity and environmental challenges. These companies allegedly collaborated with local militias and armed groups, providing them with financial and logistical support in exchange for access to mineral-rich areas. Such practices not only undermine national security but also create a parallel economy that is difficult to regulate.
This trend deprives Nigeria of the economic benefits of its natural resources while contributing to global supply chains that fail to recognise the environmental and social costs of illegal mining.
Speaking on efforts by Federal Government to make the mining sector economically viable, Minister of Solid Mineral Development, Dele Alake, during a meeting with the British Deputy High Commissioner to Nigeria, Jonny Baxter, on Monday, 27th January said the government has setup the Nigeria Solid Minerals Corporation which will be driven by the Ministry of Finance Incorporation (MOFI). According to him, it has a structure similar to the Nigeria Liquefied Natural Gas (NLNG) model. Alake expressed optimism that the Solid Minerals Corporation “will be an enduring legacy,” adding that “No future government will be able to exert any political interference.”
He said that the initiative which President Tinubu has approved will see the private sector having 50% equity stake, 25% for Nigerians, and 25% for the Federal Government.
Alake further stated that the government plans to create a more competitive and globally recognized mining sector, adding that they are focused on improving access to mining sites through the development of intermodal transport along the mining corridor, which includes roads, rail, and waterways.
There are some are hailing the initiative, others insists that the Federal Government has not come up with viable measure to address the menace of illegal mining across the country.
The challenges of illegal mining in Nigeria, coupled with the involvement of foreign entities and its implication on the national security, environmental sustainability and economic growth underscore the urgent need for decisive action. Transparency and community collaboration are essential to curb these illegal activities and revitalize the industry. By addressing these issues holistically, Nigeria can harness its vast mineral resources to boost revenue and enhance development.
Nweke is an intern at Prime Business Africa
