Nigeria Loses $9bn to Illegal Mining Yearly, House Committee Reveals

•BPP urges lawmakers to halt proposed amendment of public procurement act

Juliet Akoje in Abuja

The Chairman of the House Committee on Solid Minerals, Hon Jonathan Gaza, yesterday, revealed that unlawful mining costs the country $9 billion each year, with the only money coming from a three percent royalty paid by the few licenced miners.

This was as the Chief of Defence Staff, General Christopher Musa, disclosed that those involved in illegal mining have connections and so often brag to have links with those at the top.

Also, yesterday, the Bureau for Public Procurement (BPP) urged the House to halt the passage of a bill seeking to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act, saying the move would largely bring the institute in conflict with the mandate of the Bureau.

Continuing, Gaza, while speaking at a public hearing organised by the House Committee on Solid minerals development on the need to investigate illegal mining in the solid minerals sector said the development had hampered the country’s ability to maximise benefits from its mineral resources.

He further said the negative impacts of illegal mining has led to insecurity and conflicts over control of mining sites and their resources.

“These conflicts have escalated into violence thereby exacerbating existing political and social tensions in affected communities which has resulted in the limited data availability and inadequate measures to control this illicit practice.

“This public hearing is aimed to investigate illegal mining activities, under-reporting (extract E-Products) by mining and quarry licence operators, utilisation of financial interventions in the Nigerian solid minerals sector amounting to trillions of naira within the solid mineral sector and also the Nigeria minerals and Mining Act (Amendment Bill) and Nigeria solid Minerals Development Company (establishment bill) respectively.

“The leadership of the 10th House of Assembly found it expedient and a sense of duty to carry out these investigative hearings to necessitate transparency and accountability, public participation, policy formation and identify challenges and solutions that will ultimately lead to the revamping of our solid mineral sector.

“As we are all aware, illegal mining poses substantial risks to our nation’s economy, environment and security.”

According to him “The unregulated exploitation of our natural resources jeopardises the sustainability of the mineral sector, leading to environmental degradation and revenue loss that could otherwise benefit our communities and nation as a whole.

“It is imperative that we take as a matter of urgency, decisive steps and necessary action to address this issue and ensure that our solid mineral sector operates within the framework of the law, protecting our natural resources for future generations.

“Furthermore, as representatives of the people, the parliament is deeply worried about the loss of revenue through unregulated and illicit mining operations with the federal government disclosing that unlawful mining costs the country $9 billion each year, with the only money coming from a three per cent royalty paid by the few licenced miners.

“By attentively listening 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 illicit activity. “Allow me to state emphatically that the time is now, for us to work collaboratively and take immediate and decisive actions to revitalise and develop this critical sector for the overall benefit of benefits all Nigerians while preserving our environment for future generations.”

The Director of Operations, Air Vice Marshal Nnaemeka Ignatius Ilo, who represented the Chief of Defence Staff, while speaking on why illegal mining have continued to take place despite move by the federal government to curtail it, said most people involved in the process have connections backing them up, alleging that foreigners also come into the country to carry out the illegal act.

“The involvement of the elites in it, we can’t tell, but we know that most of the time when we catch these foreigners, they will 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’re released. Talking of illegal mining, I’m going to talk about how the military sees it.

“From our various operations and the statistics that we have, we notice that, first of all, the framework guiding mining in Nigeria is very good. It needs to be strengthened. Why do I say so, sir?”

“In 2018 or so, during the last administration, there was a ban on illegal mining in South Africa, Sinai, Nigeria. Despite that ban, mining licences were being issued to people to mine in that zone. So, the strengthening of the institutional framework is very key.

“The government needs to show their willpower that they actually want to tackle this thing by ensuring that anybody, no matter how highly placed, that is involved in illegal mining, faces the books accordingly.”

The representative of Nigeria Army, Tajudeen Lamidi, who also spoke, said the Nigeria Army had arrested 387 individuals in connection with illegal mining.

Earlier, Speaker of the House, Tajudeen Abbas, who was represented by the Leader, Prof. Julius Ihonvbere, while declaring the hearing open noted that illegal mining activity was a growing socio-economic challenge in Nigeria.

Meanwhile, the BPP has urged the House to halt passage of a bill seeking to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act.

The Bureau also urged the House to discourage the descent into the dark ages and promote a new world where people are poised for choices that provide superior services and products with the highest level of ethical standard and customer service delivery.

The Director of Civil Infrastructure, Nasir Bello, who represented the Director General of the Bureau at the hearing yesterday, stressed that allowing the amendment being sought by the bill would bring the institute in conflict with the mandate of the Bureau.

Bello, during his remark noted that, having reviewed the Bill, the Bureau, he was of the view that allowing the amendment to section 1(c) which seeks to “(c) providing training, education and examination of persons desiring to become professional procures as well as procurement auditors according to the provisions of the Act whether in Nigeria or abroad” would bring it in conflict with section 5(k) of the Public Procurement Act”

“Amending section 12 as contained in the amendment bill will also bring it in conflict with global standards and the provision of the Procurement Act,” adding that the institute should rather focus on its primary role in relation to purchasing procurement, store, materials, warehouse, logistics management or procurement chain management in Nigeria and other parts of the world”

“It should not be allowed to delve into function functions of the Bureau in relation to procurement and Public procurement in particular.

“In carrying out its mandate as stipulated in Section 5 (k) of the PPA, the Bureau has several higher institutions of learning handling courses on Procurement.

“The institute may change its name but the scope of its mandate should remain, as it is contained in its extant law.

“Notwithstanding the foregoing, should the House be inclined towards allowing the proposed amendment (without the Bureau necessarily conceding),” he added.

Earlier, Abbas Tajudeen said the public hearing reinforced the dedication of the House to open, participatory and consultative parliament as enumerated significantly in the legislative agenda.

The Speaker who was represented by Ihonvbare, said public hearing was a key legislative process put in place by the parliament to provide relevant stakeholders and other members of the public a robust window to be part of the parliamentary practice.

Also, the Chairman of the House Committee on Public Procurement, Hon. Unyime Idem, said the bill was a priority because of the important role it has played in shaping professionals in the field of purchasing and supply chain management in Nigeria and the development of high standard professional skill, ability and integrity among all those engaged in procurement practice.