In a startling allegation,Dele Alake,Nigeria’s minister of solid minerals, has claimed that powerful Nigerians involved in illegal mining are responsible for a range of criminal activities, including the sponsorship of terrorism and banditry.
Alake made the bold accusation during his appearance before the House of Representatives committee on solid minerals on Tuesday. He explained that the individuals involved in sponsoring banditry and terrorism were not individuals simply picking up gold on the ground, but rather powerful individuals who hold significant influence in the country.
According to the minister, majority of the illegal miners operating in the country are not foreigners, but rather Nigerians who do not have proper immigration status.
“Nigerians are those powerful people behind them; we are identifying them with both kynetic and non-kynetic means. We have encouraged those petty illegal miners to form cooperatives,” he said.
Alake stressed that in order to generate the necessary revenue from the mining sector, a formalised structure must be established that multinational corporations can work with, similar to the model used by the Nigerian National Petroleum Company Ltd. He emphasised that this would provide a level of stability and protection from political interference, as the structure would not be subject to the whims of individual governments.
According to the minister, the country’s mineral resources are estimated to be worth over $700 billion, but the country has only accessed a fraction of that amount. He called on the committee chairman to support the efforts to formalise and expand the mining sector, arguing that this would benefit the country’s economy and help to ensure that its mineral resources are developed responsibly and sustainably.
In order to ensure that the mining industry does not cause instability in local communities, the minister stressed the importance of engaging with these communities and ensuring that they are included in the decision-making process.
Alake requested that the committee consider the proposed budget for his ministry in the 2024 budget. He argued that if the ministry were given the requested funding, it would be able to generate a significant amount of revenue for the country, which would be greater than the amount generated by the oil sector.
The minister also stressed that the ministry’s revenue potential is significant and could play a major role in boosting the country’s economy if given the proper support. He urged the committee to consider the potential benefits of supporting the mining sector, both in terms of economic development and the country’s fiscal stability.
Alake highlighted that Nigeria is endowed with 44 minerals that are in high demand on the global market, six of which are particularly sought after. He noted that with the right support, the country has the potential to become a leading destination for investment and economic development, driven by its rich mineral resources. However, he noted that the country must first address the challenges faced by investors in the mining sector in order to unlock this potential.
Gaza Gbefwi, chairman of the house committee on solid minerals, spoke to the importance of the sector as a potential driver of economic diversification in Nigeria. He noted that while the sector has tremendous potential, the budget allocations for the sector in the proposed 2024 budget were not sufficient to realise this potential.
Gbefwi called for increased investment in the sector, highlighting the need for adequate funding to address issues such as access to electricity, transportation infrastructure, and security.
