The Minister of Solid Minerals, Dele Alake, has revealed that influential Nigerians are behind the illegal mining operations that fuel banditry and terrorism across the country. Speaking at the 2023 budget performance review and 2024 budget defense before the House of Representatives Committee on Solid Minerals, chaired by Hon. Jonathan Gbefwi, Alake noted that powerful individuals, not just foreign actors, are driving illegal mining activities.
He explained that while there are foreign elements involved, they are merely symptoms of a larger issue, which involves powerful Nigerians orchestrating these illegal operations. Alake stated that banditry and terrorism are often funded by the profits generated from illegal mining. He further highlighted the need for stronger identification and action, including using both kinetic and non-kinetic measures, to curb these activities.
Alake revealed that Nigeria has vast, untapped solid mineral deposits worth over $700 billion, but the country has yet to explore even a quarter of this potential. He emphasized the importance of establishing a formal structure, similar to the Nigerian National Petroleum Company Limited (NNPCL), but with a more private sector-driven approach. This structure, according to Alake, would ensure stability and continued revenue generation regardless of changes in government.
During the session, Alake requested support for the proposed 2024 budget, arguing that with adequate funding, the solid minerals sector could outperform other sectors, including oil, in contributing to Nigeria’s revenue. He stressed that the solid minerals sector has the potential to transform Nigeria into a global economic hub and urged lawmakers to increase budgetary allocations for exploration and infrastructure development.
In his remarks, Hon. Jonathan Gbefwi, Chairman of the House Committee on Solid Minerals, stressed the critical need for the sector’s development, noting that it could play a key role in diversifying Nigeria’s economy. He lamented that the sector, which once contributed over 50% to the nation’s GDP in the 1970s, now accounts for only 0.63%. Gbefwi urged President Bola Ahmed Tinubu to reconsider the “grossly inadequate” budget allocations for solid minerals and warned that without significant investment, the sector’s potential may never be realized.
Gbefwi also pointed out the vast difference between budget allocations in the solid minerals and petroleum sectors, citing that the petroleum sector has earmarked $400 million for frontier exploration alone. He called for a strategic partnership between the executive and legislative branches to ensure the sector receives the necessary funding and attention it requires to succeed.
Both the Minister and the Committee emphasized the urgency of investment and reform in the solid minerals sector to boost Nigeria’s economic diversification and revenue generation.
