Illegal Mining Costs Nigeria Billions and Threatens SecurityIllegal Mining Costs Nigeria Billions and Threatens Security The House of Representatives Committee on Solid Minerals has revealed that illegal mining is costing the country $9 billion annually. The committee chairman, Jonathan Gaza, made the disclosure during a public hearing on investigating illegal mining in the solid minerals sector. According to Gaza, illegal mining has hampered the country’s ability to maximize the benefits of its mineral resources. It has also led to insecurity and conflicts over control of mining sites. Illegal Mining Linked to Top Officials The Chief of Defence Staff, General Christopher Musa, revealed that those involved in illegal mining have connections to high-ranking officials. This has made it difficult to combat the practice effectively. Bureau of Public Procurement Opposes Amendment to Chartered Institute of Purchasing and Supply Management Act In a separate development, the Bureau of Public Procurement (BPP) has urged the House of Representatives to block the passage of a bill to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act. The BPP argues that the amendment would put the institute in conflict with its mandate. House of Representatives to Investigate Illegal Mining, Other Issues The House of Representatives has initiated a public hearing to investigate illegal mining, under-reporting of extraction by mining operators, and the use of financial interventions in the solid minerals sector. The hearing aims to identify challenges and solutions to improve the sector. Nigerian Army Arrests 387 Persons for Illegal Mining The Nigerian Army has arrested 387 individuals for their involvement in illegal mining. The army has also called for stronger enforcement of the mining framework to address the issue. House of Representatives Committed to Open and Consultative Process The Speaker of the House of Representatives, Tajudeen Abbas, has emphasized the importance of an open and consultative parliament. He believes that public hearings provide a platform for stakeholders to participate in the legislative process.
The chairman of the House of Representatives Committee on Solid Minerals, Mr. Jonathan Gaza, revealed on Monday that illegal mining costs the country $9 billion annually, with the only money coming from the three percent royalties paid by the few licensed miners.
This came after the Chief of Defence Staff, General Christopher Musa, revealed that those involved in illegal mining have connections and therefore often boast of having links to the top.
Also, the Bureau of Public Procurement (BPP) on Monday called on the House of Representatives to block the passage of a bill to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act. According to the BPP, the move would put the institute in conflict with the mandate of the Bureau.
Gaza continued to speak at a public hearing organized by the House of Representatives Committee on Solid Minerals Development. It discussed the need to investigate illegal mining in the solid minerals sector. He said the development has hampered the country’s ability to maximize the benefits of its mineral resources.
He further said that the negative impacts of illegal mining lead to insecurity and conflicts over control of mining sites and their resources.
“These conflicts have escalated into violence, exacerbating existing political and social tensions in affected communities, leading to limited data availability and inadequate measures to control this illegal practice.
“This public hearing is aimed at investigating illegal mining activities, under-reporting (extraction of E-products) by mining and quarry license operators, use of financial interventions in the Nigerian solid minerals sector worth trillions of naira within the solid minerals sector and also the Nigeria Minerals and Mining Act (Amendment Act) and the Nigeria Solid Minerals Development Company (Establishment Act) respectively.
“The leadership of the 10th House of Representatives felt it was expedient and a sense of duty to conduct these investigative hearings to necessitate transparency and accountability, public participation, policy making and the identification of challenges and solutions that will ultimately lead to the renewal of our core mineral sector.
“As we all know, illegal mining poses a significant risk to our country’s economy, environment and security.”
According to him, the unregulated exploitation of our natural resources is jeopardising the sustainability of the mineral sector, leading to environmental degradation and loss of revenue that could otherwise benefit our communities and the nation as a whole.
“It is imperative that we take urgent, decisive steps and implement the necessary measures to address this issue and ensure that our solid minerals sector operates within the legal framework and protects our natural resources for future generations.
“Furthermore, as representatives of the people, Parliament is deeply concerned about the loss of revenue due to unregulated and illegal mining activities. The Federal Government has revealed that illegal mining costs the country $9 billion annually, with the only money coming from a three percent royalty paid by the few licensed miners.
“By listening carefully to their testimonies and perspectives, we can gain a deeper understanding of the challenges posed by illegal mining and develop effective strategies to combat this illegal activity.
“Let me state emphatically that now is the time to work together and take immediate and decisive action to revive and develop this vital sector for the benefit of all Nigerians, while preserving our environment for future generations.”
The Director of Operations, Air Force Warrant Officer Nnaemeka Ignatius Ilo, who represented the Chief of Defence Staff, explained why illegal mining continues despite the measures taken by the Federal Government to tackle it. He said most of the people involved in the process have connections that support them and foreigners also come into the country to carry out these illegal acts.
“We don’t know if the elite are involved, but we do know that when we get these foreigners, they usually tell us that they have connections.
“I don’t want to say some things, but sometimes you hand these people over and the next thing you see, they are released. Speaking of illegal mining, I’m going to talk about how the military sees it.
“From our various activities and the statistics that we have, we see that, first of all, the framework that accompanies mining in Nigeria is very good. It needs to be strengthened. Why do I say that, sir?”
“Around 2018, during the last government, there was a ban on illegal mining in South Africa, Sinai, Nigeria. Despite that ban, mining permits were issued to people to mine in that zone. So strengthening the institutional framework is very important.
“The government must show that it has the willpower to truly tackle this problem by ensuring that anyone, no matter how senior, involved in illegal mining, treats their books accordingly.”
The representative of the Nigerian Army, Tajudeen Lamidi, who also spoke, said the Nigerian Army had arrested 387 persons in connection with illegal mining.
Earlier, the Speaker of the House of Representatives, Tajudeen Abbas, who was represented by the Leader, Prof. Julius Ihonvbere, opened the hearing, noting that illegal mining activities are a growing socio-economic problem in Nigeria.
Meanwhile, the BPP has called on the House of Representatives to block the passage of a bill to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act.
The Bureau also urged the House to discourage the slide back into the dark ages and promote a new world where people are ready for choices that deliver superior services and products with the highest ethical standards and customer service.
Civil Infrastructure Director Nasir Bello, who represented the Bureau’s Director-General at the hearing on Monday, stressed that allowing the amendment sought in the bill would bring the institution into conflict with the Bureau’s mandate.
Bello noted during his remarks that the Bureau, after reviewing the Bill, was of the opinion that allowing the amendment of Section 1(c), which seeks to “(c) provide training, education and examinations for persons aspiring to become professional procurers and procuring accountants in accordance with the provisions of the Act, whether in Nigeria or abroad”, would bring it into conflict with Section 5(k) of the Public Procurement Act.”
“Amending Section 12 as contained in the Bill will also bring it into conflict with global standards and the provisions of the Procurement Act,” he said, adding that the institution should instead focus on its primary role in relation to procurement, warehousing, materials, warehouse, logistics management or supply chain management in Nigeria and other parts of the world.
“It should not be allowed to go into more detail about the functions of the Office in relation to procurement and government procurement in particular.
“In carrying out its mandate as set out in Section 5(k) of the PPA, the Bureau has several colleges that provide courses on procurement.
“The Institute may change its name, but the scope of its mandate must remain the same, as set out in existing legislation.
“Notwithstanding the foregoing, the House might be inclined to grant the proposed amendment (without the Bureau necessarily agreeing thereto),” he added.
Earlier, Abbas Tajudeen said the public hearing had underlined the House’s commitment to an open, participatory and consultative parliament, as enumerated in detail in the legislative agenda.
The Speaker, represented by Ihonvbare, said the public hearing is an important legislative process set up by Parliament to provide a robust window for relevant stakeholders and other members of the public to be part of parliamentary practice.
Also speaking, the Chairman of the House Committee on Public Procurement, Hon. Unyime Idem, said the Bill was a priority because of the significant role it has played in shaping procurement and supply chain management professionals in Nigeria and developing high standard professional skills, competence and integrity among all those involved in procurement practice.
Julia Akoje
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