Dele Alake, Nigeria’s Minister of Solid Minerals Development, has attributed the federal government’s struggles in fully controlling the country’s gold mining sector to political, social, and cultural sensitivities, despite its constitutional mandate over the industry.
Speaking after the Federal Executive Council (FEC) meeting, Alake acknowledged the challenges arising from states’ influence over mining activities, often resulting in conflicts.
Alake highlighted that while mineral resources fall under federal jurisdiction, states still have some sway due to their control over land under the Land Use Act. To address these tensions, the federal government has proposed the creation of Special Purpose Vehicles (SPVs) to allow states to apply for mining licenses, fostering collaboration and reducing friction. Several states have already embraced this initiative.
The minister also pointed out that Nigeria has suffered trillions of naira in losses due to illegal and unregulated mining activities. To combat this, the government has approved N2.5 billion for an integrated solution framework, including satellite surveillance technology to monitor mining activities in real-time.
In addition to this technological intervention, the government is working with local mining cooperatives to legalise informal mining activities and combat illegal operations. The Nigerian government remains committed to enforcing regulations, with over 320 illegal miners recently apprehended, including foreign nationals. Alake stressed that the federal government would continue its efforts to formalize the mining sector, reduce revenue leakages, and ensure long-term sustainability.
