Why tackling insecurity, environmental devastation is vital to lift mining industry

• 2,220 Personnel To Smoke Out Illegal Miners Under A New Security Architecture
• Nigeria, France Sign MOU To Remediate 2000 Mining Pits

Despite the abundance of solid minerals in Nigeria, the country has not been able to fully explore its potential, owing to very low investment. The industry was once a substantial contributor to the growth of the Nigerian economy, accounting for approximately 4 to 5 per cent of the Gross Domestic Product (GDP) in the 1960s and 1970s. However, with the discovery of crude oil, the industry suffered from neglect, resulting in a mere 0.17 per cent contribution to the GDP in recent years (2018 – 2022).

Experts have cited several factors as responsible for the poor performance of the industry over the years. Some of these factors, they say, include: Insecurity, smuggling, State and Federal Government tax alignment, illegal mining, weak value addition, low level of mining mechanisation and inadequate funding and others.

Already, interest in mining activities in the country has increased considerably in the last few years, especially between 2015 and 2023; this, no doubt, owe much to factors such as rising demand for critical minerals, sectorial reforms, new mining technologies, innovation and soaring commodity prices.

A mining roadmap was developed in 2016 to drive the growth and development of the industry, and create a globally competitive sector capable of contributing to revenue and GDP, providing jobs and advancing social and human security for Nigerians.

While government has implemented initiatives resulting in some positive developments, challenges persist in their exploitation. Apart from limestone, most of these minerals continue to be predominantly exported in their raw form, and the value chain is largely underdeveloped.

According to Nigerian Bureau of Statistics report (2022), several global trends, including rising demand for critical minerals, sustainable mining, increased government participation in mining and talent shortage continue to shape the mining sector.

However, this only translates to an average GDP contribution of 0.15 per cent over the period, and in 2023, the mining sector contributed about 0.77 per cent to Nigeria’s GDP and projected to trend around 0.34 per cent in 2025, which is a far reach from the 3 per cent target set out in the mining roadmap.

The PwC Global Mines Report 2023 indicate that mining contribution to GDP has been fairly on the rise in recent times, growing by a Compound Annual Growth Rate (CAGR) of 28 per cent from 54.5 million tonnes in 2019 to 89.48 million tonnes in 2021.

Therefore, to achieve the ambitious 3 per cent target set in the mining roadmap for 2025, significant efforts are being taken to catalyse growth in the sector. Nigeria and France, recently, signed a Memorandum of Understanding (MOU) to develop joint projects and promote critical minerals in the solid minerals sector of both countries.

The MoU aimed to promote sustainable mining, secure critical minerals, and advance environmental rehabilitation in mining communities. Describing the deal as a boost to the efforts of the Tinubu administration to reposition Nigeria’s solid minerals sector for international competitiveness, Alake stressed that the ministry would leverage the partnership to open up the mining sector to French investors.

Nigeria and France signed the MoU as a way to promote sustainable mining, secure critical minerals, and advance environmental rehabilitation in mining communities.

The partnership is expected to open opportunity for the remediation of over 2,000 abandoned pits in the country through environmental rehabilitation and post-mining projects intervention plans, a statement signed by Segun Tomori, special assistant on media to the minister, said.

The statement said the MOU would cover critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements that are essential to clean energy technologies.

The Minister of Solid Minerals Development, Dele Alake, signed for Nigeria while Benjamin Gallezot, inter-ministerial delegate for critical ores and metals of the Republic of France, signed on behalf of France.

In the MOU signed by both countries on the sidelines of the official visit of President Bola Ahmed Tinubu to France, both countries agreed to collaborate on research, training and Franco-Nigerian students’ exchanges for knowledge and skills transfer.

A key component of the MOU is the promotion of sustainable mining activities by executing projects and programmes that reduce the environmental impact of mining on carbon emissions, water consumption, and climate change, the statement noted.

It also includes the establishment of joint extractive and processing projects through co-financing by public and private entities to diversify and secure the supply of critical minerals and decarbonise energy projects critical to the value chain.

Both nations agreed to adopt international best practices in the execution of projects conceptualised to improve the conditions of the local populace affected by mining while placing premium on transparency.

Illegal mining activities in some of the regions pose attendant Health Safety & Environment (HSE) risks and community challenges.The Minister, in November 2023, launched the “Guidelines for the Production of Community Development Agreement (CDA) in the Solid Minerals Sector.” 

The expectation is that as stakeholders and mining communities adopt the provisions of these guidelines in formulating or crafting their CDAs, mining operations will be conducted in an atmosphere of peace and cordiality with the host communities. 

In 2023, the partnership between Africa Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF) to address these gaps by co-funding priority mining projects, but these interventions might not be enough because of illegal mining, which has continued to overshadow formal operations.

In March this year, the Federal Government, through the Ministry of Solid Minerals Development, secured engaged the services of 2,220 personnel under new security architecture with the mandate to smoke out illegal miners and all those who flout the nation’s mining laws. Insecurity is said to have cost Nigeria’s mining sector billions of dollars due to a number of factors, including:
 
It also charged the new operatives to stem theft and all nefarious activities around the nation’s mineral resources so that the nation can reap maximum benefits from its God-given resources.
 
The Minister, Alake, said the official reception of the marshals would ensure security at mining sites, eliminate illegality, and sanitise mining environments to counter illegal mining and smuggling of solid minerals from Nigeria.

He described this as a major success in his seven-point agenda. He added that the mines marshal devised to be an interagency security outfit would incorporate special operatives from other security agencies such as the Nigeria Police and army, amongst others. 
 
Alake said, “insecurity has bedevilled the mineral sector of this economy, and it has combined with other variables to short-change revenue generation. So amongst others, the issue of combating insecurity in this sector is very crucial if we are going to record any success. Without the security of the operating environment in the mineral sector, you can’t even talk of increasing the revenue yield.
 
“We hope and believe that the minerals will become the revenue saver of the Nigerian economy, and we are pursuing the goal of making the mineral sector contribute more than 50 percent to the gross domestic product, and that is our long-term objective. 
 
“Formally handing over the civil defence structure to engage illegal miners and sanitise our mining environment was also part of what we conceived at the inter-ministerial committee. I am very happy to let the public know that we did say at the onset that we are going to tackle insecurity, and the first batch of the security apparatus that we are using in this sector is what we are launching here today. The civil defence structure already existed before, and we thought that amongst other logistic support that is necessary for the takeoff of the new security architecture for this sector. 

While the establishment of this new agency, alongside the presence of the Nigeria Security and Civil Defence Corps (NSCDC), was meant to curb illegal mining, the problem persists, and questions about their effectiveness and roles continue to arise. 
 
This latest development comes two months after President Bola Tinubu established an inter-ministerial committee, led by the Solid Minerals Development Minister, to deliberate on modalities in achieving the mandate of producing a blueprint for securing the country’s natural resources, including solid minerals, forests, and marine economy, and curbing the menace of illegal mining.
 
The mining marshal was introduced to support government’s effort in addressing the negative impact of illegal mining, including environmental degradation, exploitation, and loss of revenue for local communities, and to improve regulation and oversight of mining operations, ensuring that operators adhere to legal frameworks and best practices.
 
However, despite these intentions, The Guardian gathered that illegal mining has continued to flourish in many regions of Nigeria, posing several challenges to both agencies. The presence of the mining marshal’s has not had the desired impact in truly curtailing the problem, which is said to be attributed to several factors.
 
While the mining marshals have certainly raised awareness of the issues, their operational capacity has been limited, and their presence has not significantly disrupted illegal mining activities.

Industry watchers say illegal mining often occurs in remote and difficult-to-access areas, making it challenging for law enforcement agencies to conduct effective surveillance.
 
According to a government statement, over 500 illegal mines continue to thrive in Nigeria. The World Bank revealed that Nigeria’s illegal mining sector is still widespread, with an estimated 2 million people involved in these activities, and rural communities in some states face widespread poverty, with unemployment rates exceeding 30 per cent.

A geologist, Muhammad Ali, expressed concerns about the government’s approach to tackling illegal mining in the country.  He said despite recent efforts, including the introduction of mine marshals and sporadic arrests, the problem persists.
 
“The strategies are laudable; at least a move is being made, but the impact is not as expected; in some cases, the solution becomes the problem itself. You will see a few arrests here and there, with fewer trials, yet the practice continues unabated.” Ali pointed to the growing poverty rate in the country as a major factor fuelling illegal mining.
 
“With more unskilled people flooding the industry in search of quick money, we’re only seeing an increase in illegal mining activities. Poverty is driving people into these activities, and until that’s addressed, these efforts will remain ineffective,” he added.
 
He noted that relying on brute force like the deployment of mine marshals will not solve the issue. “Introducing more security forces into the sector may lead to further insecurity; brute force alone will not resolve the issue. It might even make things worse. The problem is much deeper than just enforcement.”
 
Ali emphasised the need for a more nuanced approach, one that includes better intelligence gathering and collaboration between security agencies and traditional institutions.
 
“We need effective intelligence gathering. Security agencies and traditional leaders must work together to identify the bad actors and separate them from the legitimate miners. The traditional institutions have long-standing relationships with the people and the land. They can play a key role in maintaining order, but they need to be recognised as vital stakeholders in the industry. If we empower them, they will act in the best interest of the country.

“The examples of successful collaboration are few. In some cases, even when things start off well, personal interests eventually derail efforts; the implication is that while the government is trying, the solutions lack sustainability.” Ali also highlighted the far-reaching consequences of illegal mining, not only on the environment but also on national security and the economy.

“Insecurity, environmental degradation, the spread of diseases, and economic sabotage are just a few of the problems. The mining sector should be a major source of revenue for the country, but instead, we’re seeing dwindling revenue and pollution. This could even lead to inflation,” he warned.
   
“We have to restructure the sector, improve regulation, and make sure that all stakeholders’ security forces, traditional institutions, and local communities work together toward a common goal; if we don’t, we will continue to see the erosion of Nigeria’s mineral resources and the communities that rely on them.”

“Working closely with the Ministry of Solid Minerals Development and other security agencies, the Mining Marshal plays a crucial role in protecting critical national assets and infrastructure, ensuring a safer and more productive mining environment across Nigeria. He noted that a specialised approach is needed to address better surveillance and enforcement capabilities and several challenges faced by the NSCDC in the sector, such as the vast and remote mining sites that make enforcement difficult, the well-organised networks of illegal miners, and the resistance from local communities dependent on illegal mining for their livelihoods.
 
Opebiyi stated that investing in advanced technologies, such as drones and satellite imaging, would monitor mining sites more effectively. He also called for increased funding to support the Corps’ operations and the recruitment of specialised personnel to enhance monitoring and enforcement.
 
According to him, since January 2024, the NSCDC has made significant progress in curbing illegal mining in the region, with 25 suspects arrested in various operations. 
 
“These individuals, apprehended for their involvement in illegal mining activities, were investigated, and those found guilty were required to pay royalties to the government as part of regulatory enforcement efforts.” Opebiyi said such measures are vital to ensuring compliance with mining laws and promoting legal mining practices.