Probe $9bn yearly revenue loss to illegal mining, Senate tasks FG

By Tunde Opalana

The Senate has charged the Federal Government to investigate the alleged annual revenue loss of $9 billion to illegal mining and smuggling of gold in Nigeria.

The upper legislative chamber specifically urged the executive arm of government to intensify efforts to combat illegal mining and block all revenue leakages from such clandestine activities as well as establish gold mining farms to assist artisans miners.

The Senate, in its resolutions sequel to a motion sponsored by the Senate Chief Whip and former Abia State governor, Senator Orji Uzor Kalu during plenary, also mandated its Committee on Solid Minerals, Mines, Steel Development and Metallurgy to investigate all illegal mining and revenue leakages associated with the activities.

According to him, Nigeria has current estimated gold reserves of over 200million ounces, most of which have not been exploited.

He submitted that developing sustainable programmes that will catalyse increased investment in the extraction and refining of gold sourced from mines in Nigeria, is indeed vital.

Senator Kalu, while presenting the motion, noted that “Nigeria lost close to $54billion from 2012-2018 due to illegal smuggling of gold”, stressing that “the country is said to be losing about $9billion yearly to illegal mining and gold exportation, a huge amount of money unaccounted for through under the radar sales of the expensive commodity.”

The Abia North senator added that “the activities of unlicensed miners were becoming prevalent within the industry and the incessant smuggling of solid minerals out of the country by middlemen and smugglers, is leading to loss of government revenue.”

According to him, gold mining operations in the country is capable of providing over 250, 000 jobs and over $500million annually in royalties and taxes to the federal government and as mineral resources.

This, he explained would further help in diversifying the nation’s economy and improve its foreign exchange reserve. Sen. Kalu said “Nigeria has an average of 21.37 tonnes of gold deposit from 2000 to 2018, and reaching an all-time high of 21.40 tonnes in the first quarter of 2018.

“Constitutionally, all minerals in Nigeria are the property of the state, vested in the hands of the President of the Federal Republic of Nigeria in trust for the Nigerian people.

Section 44 (3) of the Nigerian Minerals and Mining law of 1999 provides that ownership and control of all minerals in Nigeria is vested in the federal government, which is mandated to manage such natural resources in a manner as may be prescribed by the National Assembly.

“Distinguished colleagues you will agree with me that illegal mining is one of the key challenges hindering the development of Nigeria’s mining industry.

If we don’t fix this hemorrhage of our economy, we would literally bleed to death.

“Mr. President, despite having this huge gold deposit, Nigeria is yet to benefit from the natural resources due to lack of big investors and illegal mining activities in the solid minerals sector.

Data from the Ministry of Solid Minerals and Development show that there are gold deposits in Federal Capital Territory Abuja, Abia, Bauchi, Cross River, Edo, Niger, Sokoto, Kebbi, Oyo, Kogi, Zamfara, Osun and Kaduna states.

“Illegal gold mining has been a reprehensible activity and has continued to thrive despite government’s threat to prosecute culprits.

It is critical to observe that if the country conserves her gold reserves, and ensures effective exploitation, the accruing revenue would surpass that of oil and gas.

“In fact according to Signal One International, SOI, a US based company, disclosed in a 2016 report that Nigeria has lost over $50 billion in gold revenue tax in two years as a result of illegal mining and exportation of unprocessed gold.

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Also reports from the Nigeria Extractive Industries Transparency Initiative, NEITI indicated that Nigeria lost about nine billion dollars to illegal mining operations and gold exportation from 2014 to 2015 and in six years accrued to $54 billion dollars”.

Contributing, Senator Smart Adeyemi (APC Kogi West), also stressed the need for government to seal up illegal mining activities, adding that it added to the insecurity challenges facing the country “because most of the miners are foreigners.”