Alake explains why control of illegal mining is difficult

Political, social, and cultural factors are significant obstacles to regulating mining activities in the country, according to Solid Minerals Development Minister Dele Alake.
However, Alake highlighted that the Federal Executive Council (FEC) has approved N2.5 billion for the purchase of satellite surveillance equipment aimed at combating illegal and unregulated mining across the nation.
Speaking to reporters after the FEC meeting in Abuja, Alake also revealed that 320 illegal miners had been arrested in recent months. Of these, approximately 150 are currently undergoing prosecution, while nine individuals, including four foreigners, have been convicted.
Discussing how politics impacts the control of mining, the minister noted that many states exert influence over mining activities, despite the Federal Government having exclusive rights to mineral resources. He attributed this to the Land Use Act, which gives states ownership of land.
Miners are required to obtain consent from host communities before being granted federal mining licenses. To address the conflicts often arising from state involvement in the mining sector, Alake explained that his ministry has opted for consultations with state governors. He revealed that he has met with at least 32 governors at the Nigerian Governors’ Forum secretariat in Abuja.
His words: “There is a sensitivity given the peculiarity of our environment – political, social, and cultural – which we recognise.
“I have met the governors. I have had a meeting with 32 of them at their secretariat, organised by the Chairman of the Governors’ Forum, AbdulRahman AbdulRasaq, who is also the governor of Kwara State.
‘’Some of them feigned ignorance of this constitutional separation of powers, even though they have attorneys-general.”
Alake assured that despite the legal clarity that mineral resources belong to the Federal Government, states exercise some level of control due to their ownership of lands under the Land Use Act.
Miners are required to obtain consent from host communities before being granted federal mining licences.
He stated that during the meeting, states were encouraged to use Special Purpose Vehicles (SPVs) to fully participate in mining.
SPV is a route through which state-owned companies can apply for mining licenses.
“I announced to the governors that they could form an SPV to apply for a mining licence in their state, and I will approve it. This way, they feel a sense of belonging, and it is a win-win situation for the Federal Government, the states, and host communities,” Alake said.
He revealed that many of the states embraced the SPV approach after President Bola Tinubu gave him the authority to expedite approvals for state-owned mining operations.
Alake advised the state to collaborate with federal authorities in addressing illegal mining and related criminal activities.
He said that the Office of the National Security Adviser and the Ministry of Defence were working closely to curb illegal mining operations.
“There have been cases of interference by states in mining activities. If there is an infraction in a state, the governor must consult us before taking action. We investigate and either act directly or authorise the state to act under federal cover,” he said.
On the N2.5 billion approved by FEC, the minister said: “We are procuring satellite equipment that will be installed in strategic locations nationwide. This will allow us to have a visual, real-time view of mining operations across the country, enabling us to track extraction volumes, monitor truck movements, and assess security situations at mining sites.
“The satellite surveillance system will have a monitoring screen in my office. With just a click of a button, we will be able to zoom in on any mining site in the country and observe activities in real-time.”
He however said that N2.5 billion has been reviewed downward to ensure cost efficiency.
Alake explained that the government has been implementing a two-pronged approach—persuasive and coercive—to address illegal mining.
Under the persuasive strategy, informal and artisanal miners are encouraged to form cooperatives to legalise their operations.
“We have successfully persuaded over 300 illegal mining groups to form cooperative societies. Now, they are fully legalized, structured, and contributing meaningfully to the nation’s revenue” he said.
For those who refuse to comply, the government has deployed law enforcement through the Mines Marshals, a special unit created to tackle illegal mining.
Alake, who described the scale of losses in the sector as “mind-boggling,” attributed it to underreporting, illegal operations and the vastness of the country.
“A very elementary, non-scientific estimate we conducted in 2023 immediately after we assumed office revealed trillions of naira lost through unregulated, under-reported, and unlicensed mining activities,” he said.
The minister lamented that gold, one of Nigeria’s most valuable mineral resources, has been particularly affected by illegal mining, with the country losing far more than it has officially gained.
“You should not ask how much the nation has gotten from gold; you should ask how much the nation has lost in gold. It is humongous, unheard of,” he said.
Alake also announced progress in the establishment of the Nigerian Mining Corporation, a state-backed but privately driven entity aimed at revitalising the sector.
According to him, President Tinubu has approved the appointment of Martin Imanite, a mining finance expert based in Australia, as the corporation’s CEO.
He explained that the corporation’s equity structure will ensure minimal government interference, with 50 per cent controlled by the private sector, 25 per cent by the Federal Government and 25 per cent by Nigerians.