NIGERIA: Revenue Lost To Illegal Mining Surpasses National Budget, Says Ex-SDP Presidential Candidate

By Onoja Baba, Nigeria

Prince Adewole Adebayo, the 2023 presidential candidate of the Social Democratic Party (SDP), has raised alarm over the staggering losses Nigeria incurs from illegal mining activities, stating that the revenue lost surpasses the country’s entire annual budget.

Speaking during the Sunday edition of Channels Television’s Politics Today, Adebayo expressed concerns about the unchecked looting of the nation’s solid minerals.

He emphasised that illegal mining, particularly in regions like Zamfara State’s Bukkuyum and Anka local government areas, has flourished over the past two decades, depriving the country of critical revenue.

In July 2024, the Chairman of the House of Representatives Committee on Solid Minerals, Jonathan Gbefwi, disclosed that illegal mining costs Nigeria approximately $9 billion annually.

Despite government efforts to regulate the sector, Gbefwi revealed that only three percent of royalties from legal mining operations are remitted to government coffers.

Echoing similar frustrations, Adebayo criticized the Federal Government’s management of the solid minerals sector, questioning the performance of the Minister of Solid Minerals, Dele Alake.

“Did you notice that Dele Alake has been quiet recently? He needs to tell us how he has improved the revenue from solid minerals,” Adebayo remarked.

He further stated that while regulatory measures such as raising tariffs for licenses have been implemented, they appear insufficient to curb the pervasive illegal activities.

“I can tell you that the amount of money stolen from illegal mining right from Zamfara to Osun, Ebonyi, and Nasarawa is far more than the entire budget they are writing now,” Adebayo asserted.

The former presidential candidate called for more stringent oversight and action to address the leakages in the sector, warning that the continued looting of Nigeria’s mineral wealth poses a significant threat to the nation’s economic stability.

Illegal mining remains a critical challenge for Nigeria, with reports indicating that the sector is not only poorly regulated but also plagued by corruption, lack of enforcement, and collaboration between local operators and international smugglers.

As the country struggles with revenue shortfalls and mounting economic pressures, stakeholders continue to advocate for urgent reforms to plug the financial losses attributed to the illegal mining boom.