Reform The Mining Sector

More than ever before and in view of recent happenings in the country where illegal mining has become a security issue, there is need for urgent reforms in the sector. For some inexplicable reasons, the mining sector in Nigeria was not given much attention by the government despite its immense potential to contribute, significantly, to the nation’s Gross Domestic Product (GDP).

It is a known fact that Nigeria is rich in solid mineral resources such as gold, coal, iron ore, and limestone to mention just a few. Yet the mining industry remains underdeveloped due to a lack of government investment and a widespread illegal mining operations by powerful elements in the private sector that pose a significant security threat to Nigeria and Nigerians.

Estimates indicate that the country is hemorrhaging a staggering 91 per cent of its revenue from the mining sector due to the rapacious activities of illegal miners. A whopping 80 per cent of mining in Nigeria’s northwest region is being conducted illicitly, causing the nation to lose humongous revenue.

While countries like Ghana, Burkina Faso, and Cote d’Ivoire harness their mining sectors to contribute to their GDPs, Nigeria lags, receiving a mere nine per cent from the sector. The grim reality is compounded by the pervasive illegality which paints a dire picture for the nation’s economic prospects.

The illegal mining activities in Nigeria have become a worrisome menace that the government must address urgently. Many of the illegal miners store up explosives which they use for their operations even in residential buildings. And when something goes wrong with the explosives, innocent lives are lost, and properties worth billions of naira are destroyed. The consequences of this illicit activity extend beyond financial losses. It fuels the flames of insecurity, manifesting in banditry, kidnapping, and even insurgency.

The recent explosion in Ibadan, the Oyo State capital, which resulted in loss of lives and destruction of properties worth billions of naira is a clear indication of the dangers posed by illegal mining. The illegal foreign miners had explosives inside the building. The foreigners had been living there since 2013. They would go in the morning and come back in the evening.  They are all over the place; that’s their trade and that’s what they are in Nigeria to do.

Although, it is heartwarming to know that Governor Seyi Makinde recently signed an Executive Order on handling and storage of harmful substances to prevent recurrence, the state government, in collaboration with the federal government, needs to go beyond the ceremony and fanfare. The perpetrators must be brought to book. The report of the ongoing investigation must not be swept under the carpet or go the way of previous similar reports.

The level of damage caused by the explosion cannot be adequately quantified. Apart from the 58 houses that were visibly damaged within the immediate vicinity of the explosion, 230 others had to be subjected to structural integrity tests, to ascertain their levels of impact and fitness for continued use.  They include 13 houses within 50 metres radius of the explosion site; 40 houses at 100 metres radius; 122 houses at 200 metres radius and 53 houses within a 250 metres radius. That gives a good idea of the scale of the deadly blast.

In our opinion, the federal government must take decisive steps to prevent the recurrence of explosions because of the activities of illegal miners. It must regulate the mining industry, provide adequate security, invest in the industry, and create awareness campaigns to educate the people. By doing so, the safety of lives and properties will be guaranteed and a sustainable mining industry that will benefit all will be created.

The government, also, needs to collaborate with the private sector to develop the mining industry and create jobs for Nigerians. The mining sector has the potential to provide employment opportunities for millions of Nigerians, especially in rural areas where poverty is prevalent. The government can also generate revenue from the mining industry, which can be channeled into other sectors of the economy to promote growth and development.

It is important to stress that government, at all levels, must take the business of the mining sector seriously and check the worrisome menace of illegal mining. This entails the injection of massive investment in the industry, provision of necessary infrastructure, putting in place policies to it as well as collaboration with the private sector to develop the sector. This will not only boost the economy but also create the much- needed employment opportunities for Nigerians and improve their standard of living. The government must act now to prevent further loss of lives and properties due to illegal mining activities.