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Struggle for Gold

by nextierspd

Illegal mining in Nigeria’s North-west region is laden with many consequences. Although the practice may not have dominated news headlines, it has resulted in many implications for the region and beyond. According to the Institute of Security Studies (ISS), about 80 per cent of mining in the North-west region is carried out illegally and on an artisanal basis by local populations. Also, about 500 kilograms of gold is smuggled to neighbouring countries every month. The Federal Ministry of Mines and Steel Development says that illegal mining accounts for about 80 per cent loss of revenue that would have accrued to the federal government from the solid minerals sector.  

In 2017, Nigeria lost about $9 billion to illegal mining. Zamfara and Kaduna states are few of the major states with massive gold deposits in Nigeria. Both states have also been faced with security challenges in the past years. Zamfara state’s 2020 budget is estimated at ₦188 billion while that of Kaduna is ₦259.25 billion. The resources lost in these states due to illegal mining can fund all the state budgets in the region. Unfortunately, the mineral resources that would have aided the development of the region are lost to artisanal mining. Underdevelopment indices of the area have continued to plumb new depths.

Unauthorised mining activities in the region continue to peak as non-state groups struggle over the unregulated mining sites. Mining groups and elites with vested interests in the region have also weaponised the competition over access to mining sites. And this has continued to fuel the armed conflict within and around the area. For instance, in April 2019, the federal government banned mining activities in Zamfara as it was linked to the sporadic rise of criminality and violent conflict in the state, which has been likened to the Hobbesian state of nature. However, the government\’s ban on mining activities has not been sustainable as violent conflict is still a daily occurrence in the area. The conflict is widespread across the North-western states such as Plateau, Niger, Katsina, Kebbi, etc. Illegal mining-fuelled conflict in these areas is manifesting mainly as armed banditry, which has posed a great concern not just for the region but the entire country due to losses to human lives and investments.

The activities in the North-west region rubs the nation of a huge revenue source. The country’s over-dependence on crude oil could be lessened if measures are put in place to stop illegal mining. As widespread discussions have favoured diversification from an oil-based economy, Nigeria must look into other viable sectors. The nation is already endowed with rich mineral deposits.  Government must move to comprehensively arrest the menace of illegal mining. This effort should be supported by state governments of the areas affected and other important stakeholders. The Federal Ministry of Mines and Steel Development should work with security agencies to monitor and secure mining locations. Illegal mining has made regulations and remittance difficult; therefore government must make efforts to enforce full regulation of mining activities and compel mining companies to apply for licenses. Bringing mining activities under the close purview of government will improve accountability and transparency around mining in the country. It will also curb the menace of illegal mining and its consequences. 

Further to these recommendations, government must move to disincentivise artisanal mining by the local population. Arguably, the human capital deficits in the North-western region and lack of effective government presence in mining areas are push-factors to the cut-throat engagement of the local population in a quest for sustenance and survival. Adequate government regulations will, to a large extent, address the losses to illegal mining. Part of the revenue accruing from regulated mining should be used to drive development in the area. If the Federal government can maximise revenue from mining activities, it can fund developmental projects that will improve the living condition of the people. Besides, these efforts will significantly reduce greed and grievance-driven conflicts in the region; the North-west should not be another Niger Delta. Without a government-led and community-centred approach, illegal mining and conflicts in Nigeria’s unofficial theatre of war will continue to reinforce each other and pose numerous existential crisis in the region.

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