Abuja owns the mines, bandits run them

A few years ago, a relative called me from my village in Kogi State. He was excited: he had found coal on his land and planned to dig.

“Have you got the federal permits? You need permits to mine that land.” I added.

Sounding exasperated, he responded: “What permits?! Everyone is mining their lands here!”

That is Nigeria’s mining sector in one phone call. Illegal mining is extremely widespread, and the Federal Government (‘FG’) can do little to nothing to clamp down on it. Policing 44 commercially viable minerals across 923,768 km² of often-inaccessible terrain is simply impossible.

The law is clear and absolute. Section 44(3) of Nigeria’s Constitution, the Land Use Act of 1978 and the Minerals and Mining Act of 2007 all vest mineral ownership wholly in the FG. The text of the Constitution states that:

“…the entire property in and control of all minerals, mineral oils and natural gas in under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic Zone of Nigeria shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly…”

Since ownership demands vigilance, it now behoves the FG to monitor its mineral rights and enforce them. However, the administration and enforcement of the FG’s mineral rights foist upon the FG a heavy and practically impossible burden of policing multiple mineral rights across the large swathes of land in Nigeria’s 36 states.

The results are predictable and devastating:

● Nigeria loses at least $9 billion annually to illegal mining and smuggling (some estimates put cumulative losses far higher (up to $100 billion).

● Lead poisoning has killed hundreds of children and left thousands with permanent brain damage in Zamfara and elsewhere. Kidney disease has become rife in states like Jigawa and Zamfara due to exposure to heavy metals used in mining, such as mercury.

● Communities have become lawless fiefs where armed bandit groups act as the real government.

In many parts of Nigeria, mining remains a free-for-all affair, like my relative said it has become in my village. The logic is not difficult to grasp: If Mr. A illegally mines gold and makes good money while at it, and there are no repercussions, Messrs. B and C will likely do the same. At the end of the day, most of this illegal mining takes place in rural areas where you have a lot of people living in poverty. Nigeria’s illegal mining is so lucrative that even foreigners from Niger, Chad, and as faraway as China have come to dig. Two years ago, 13 Chinese nationals were arrested for mining gold illegally in Kwara State.

The point about communities in Nigeria becoming bandit fiefs is the one now killing the country. Seeing the literal and figurative distance of the FG from many local communities, illegal mining has birthed and aided the rise of bandits who constitute themselves as de facto governments over some resource-rich communities, mainly in northern Nigeria. They ‘govern’ the mining lands and ‘protect’ the legal and illegal miners. In exchange, they are paid by the miners.

The bandits also engage in kidnapping/mass kidnapping for ransom, cattle rustling, and all kinds of criminality. The entire situation is a mess created by the absence and failure of governance.

A few weeks ago, northern governors begged the Federal Government to suspend all mining activities in the region for six months. With respect, that is treating the symptom, not the disease. Law-abiding miners may obey a ban; bandits and their backers will not.

I believe the real cure is devolution. The FG must devolve ownership of mineral rights to landowners and devolve day-to-day regulation and enforcement of mining laws to state governments. The FG can keep a share of the royalties and/or taxes. This way, the FG can transfer the burden of vigilance to landowners and enforcement to state governments.

Under this framework, the FG not only co-opts the help of the states but frees itself up to focus on perfecting something it typically does a better job at – revenue collection and generation. As in other parts of the world, I believe private ownership of mineral rights will also drive private wealth creation and enterprise in Nigeria.

Years of government ownership of mineral resources in Nigeria have been disastrous, and the chronic insecurity provides an opportunity for us to do something differently. This current system of FG ownership is a relic of colonial and military rule and the desire of governments under both eras to unite the control of mineral resources under a central government.

While devolution risks uneven state capacity, some of Nigeria’s oil and gas sector reforms show that the shared governance model works. Oil and gas saw local uprisings, massive sabotage, and theft until the government raised revenue paid to the states and local communities while getting locals more involved in the sector through activities like pipeline security.

Abuja cannot patrol every forest in Zamfara, much less Kebbi, Katsina, or Jigawa. It never will. Until we change the law that makes every gram of gold in those forests “federal property,” our current system will continue to nurture banditry. Are my recommendations radical? Of course, but dangerous times demand bold, innovative solutions.

Joel Joshua is a Nigerian attorney based in Atlanta, Georgia, the United States.

Join BusinessDay whatsapp Channel, to stay up to date