Nigeria has taken a decisive step in curbing illegal activities by approving N2.5 billion for the procurement of a surveillance satellite system. This initiative, championed by the Minister of Solid Minerals Development, Dele Alake, aims to monitor and regulate the country’s mining sector more effectively.
The move comes in response to the trillions of naira lost due to unregulated and illegal mining operations. Speaking after a Federal Executive Council meeting, Alake emphasized the importance of addressing the complexities of mining governance, particularly the overlapping roles of federal and state authorities. While mineral resources fall under federal jurisdiction, state governments often exert control over land use, creating legal and administrative conflicts.
To navigate these challenges, Alake has engaged in extensive discussions with state governors through the Nigeria Governors’ Forum (NGF). He noted that some governors were initially unaware of the constitutional provisions regarding mining, but through dialogue, a consensus has been reached on cooperative governance. One of the proposed solutions is the formation of Special Purpose Vehicles (SPVs), which allow states to apply for mining licenses, thereby fostering collaboration between federal and state governments.
The new satellite surveillance system is expected to revolutionize monitoring efforts. The technology will provide real-time visual data on mining operations, tracking extraction activities, vehicle movements, and security situations at mining sites. This initiative is part of a broader strategy to curb revenue losses and prevent the illicit extraction of mineral resources.
In addition to surveillance, the federal government has been actively tackling illegal mining through both persuasive and coercive means. Artisanal and small-scale miners have been encouraged to form cooperatives, legalizing their operations and integrating them into the formal economy. Over 300 such groups have already transitioned into legitimate businesses, gaining access to financial support and government incentives.
However, for those who persist in illegal mining, enforcement measures have been intensified. The Mines Marshals, a specialized task force, has arrested 320 illegal miners in recent months, with 150 currently facing prosecution and nine already convicted. Foreign nationals involved in unauthorized mining operations have also been apprehended and prosecuted.
Despite these enforcement efforts, Alake stressed that technology remains the key to sustainable reform. The surveillance satellite system will include a centralized operations center, allowing authorities to zoom in on any mining site in real time. This will enable swift intervention in cases of illegal activity and enhance the overall security of mining operations.
The financial implications of illegal mining have been staggering. Alake revealed that an elementary estimate conducted in 2023 showed trillions of naira lost due to under-reported and unauthorized mining activities. Gold, one of Nigeria’s most valuable resources, has been significantly affected, with more being lost through illicit channels than officially recorded.
To further strengthen the mining sector, the federal government is also establishing the Nigerian Mining Corporation. This entity, designed to be a state-backed but privately driven institution, will drive investment and development in the industry. President Bola Tinubu has appointed Martin Imanite, a mining finance expert from Western Australia, as the corporation’s CEO. The equity structure of the corporation ensures minimal government interference, with 50% controlled by the private sector, 25% by the federal government, and the remaining 25% open to Nigerian citizens.
With the approval of the satellite surveillance system and the formation of the Nigerian Mining Corporation, Nigeria is positioning itself for a more transparent, regulated, and profitable mining industry. These initiatives mark a significant shift in policy, aimed at safeguarding national resources while fostering economic growth and security.
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