Daniel Otera
A recent conviction in Ilorin, the Kwara State capital, has once again brought to the surface the growing challenge of unregulated mineral exploitation in Nigeria, a sector plagued by revenue losses, illicit exportation, and weak enforcement.
On 11 June 2024, operatives of the Economic and Financial Crimes Commission (EFCC) arrested a truck driver, Olamilekan Basit, in Balla, Asa Local Government Area of Kwara State while transporting 30 tons of assorted solid minerals without valid documentation. The suspect was convicted and sentenced by Justice Abimbola Awogboro of the Federal High Court, Ilorin, to one year in prison, with an option of a ₦1 million fine.
Additionally, the court ordered Mr Basit to pay ₦5 million in mineral royalties to the federal government.
“This conviction is part of a broader effort to curb illegal mining activities across the country,” said EFCC spokesperson Dele Oyewale in a statement issued on Wednesday.
The illegal extraction and movement of solid minerals continue to undermine Nigeria’s economic potential. Although the country is richly endowed with over 44 commercially viable solid minerals, the sector remains poorly regulated, with significant losses traced to smuggling, tax evasion, and unrecorded exports.
According to the Nigeria Extractive Industries Transparency Initiative (NEITI), Nigeria generated ₦193.59 billion from the solid minerals sector in 2021. However, this figure represents only a small portion of the revenue that is potentially realisable. In its 2023 industry report, NEITI revealed that over $9 billion worth of gold was illegally smuggled out of the country between 2007 and 2021, without proper documentation or the remittance of statutory royalties.
NEITI identified states such as Kogi, Niger, Nasarawa, Kwara, and Kaduna as key hotspots where illegal mining operations thrive, often bypassing regulatory oversight.
“The solid minerals sector has enormous potential, but Nigeria is bleeding revenue because the value chain is dominated by informal and criminal actors who bypass regulatory oversight,” said Dr Orji Ogbonnaya Orji, NEITI’s Executive Secretary.
The scale of these losses not only affects federal earnings but also deprives mineral-rich communities of development opportunities while contributing to insecurity and environmental degradation, particularly in northern states.
Mr Basit’s conviction is part of a wider trend of prosecutions linked to the illegal possession and transportation of solid minerals.
On 22 May 2024, the EFCC arraigned two other individuals Nura Lawal, a truck driver, and Tunde Jimoh, his escort before Justice Uche Agomoh of the Federal High Court, Ibadan, for allegedly conveying 30 tons of solid minerals without lawful authority. According to the EFCC, Mr Lawal pleaded guilty after the charge was interpreted to him in Hausa, while Mr Jimoh pleaded not guilty and is currently facing trial.
In another operation, the EFCC’s Enugu Zonal Directorate arrested two Chinese nationals, Wang Jiang and Wang Richard, alongside two Nigerian associates, Donatus Agupusi and Michael Agu, in November 2024 for allegedly attempting to smuggle solid minerals out of the country without federal authorisation. The arrests followed intelligence received from the Federal Airports Authority of Nigeria (FAAN), which led to Mr Jiang being intercepted during baggage screening at Akanu Ibiam International Airport, Enugu. The remaining suspects were later apprehended at the EFCC’s regional office.
Investigations confirmed that the minerals were being exported without the requisite federal permits. All suspects remain in custody pending formal arraignment.
Although Nigeria is blessed with more than 44 commercially viable solid minerals including gold, lithium, tantalite, barite, and lead-zinc the sector remains largely untapped and poorly regulated. According to NEITI, the solid minerals sector contributed just 0.63 percent to Nigeria’s Gross Domestic Product (GDP) in 2021. This figure, though slightly improved from previous years, remains abysmally low for a country with such mineral wealth.
In contrast, data from the National Bureau of Statistics (NBS) shows that the broader mining and quarrying sector (which includes oil and gas) contributed 5.60 percent to Nigeria’s GDP in Q2 2024. However, solid minerals accounted for only a fraction of that figure.
NEITI’s 2024 policy brief described the contribution of solid minerals as “negligible,” calling for urgent reforms in licensing, oversight, and enforcement.
While official solid mineral exports have reportedly increased, a significant portion of the trade still escapes government oversight. Data from the Nigeria Customs Service (NCS) indicates that solid mineral exports fetched ₦456.88 billion in the first half of 2024. However, regulatory bodies continue to struggle with accurate accounting due to smuggling, under-declaration, and the absence of real-time tracking mechanisms.
A 2023 NEITI report flagged the “unofficial export of solid minerals” as a critical national challenge, citing frequent exploitation of loopholes at airports and land borders by unregistered operators.
In Kwara State alone, authorities recorded at least 16 arrests related to illegal mining between January and December 2023, according to figures from the state’s Ministry of Solid Minerals. Most of those apprehended were found to be operating without Community Development Agreements (CDAs) or Environmental Impact Assessments (EIAs) both mandatory under the Minerals and Mining Act, 2007.
NEITI’s 2021 audit revealed that only 6 percent of licensed mining companies in Nigeria accurately paid royalties to the federal government. The majority either under-reported their production volumes or failed to remit payments entirely. That same year, Nigeria lost over ₦2 billion in unpaid royalties and levies, the audit showed.
Beyond the loss of government revenue, illegal mining has also been increasingly linked to insecurity in the north-central and north-western regions of Nigeria. A 2024 policy brief by SBM Intelligence revealed that many unregulated mining sites are controlled by criminal networks, who use proceeds from the illicit mineral trade to finance arms trafficking, banditry, and rural violence.
“The illegal mining ecosystem is not just about minerals; it’s now a key driver of organised crime,” the report warned, citing Zamfara, Kaduna, and Niger as major hotspots.
Security analysts have consistently raised alarms over the connection between unregulated resource extraction and violent conflict. They argue that unless Nigeria formalises and regulates its solid minerals value chain, the sector will continue to fuel instability and environmental degradation.
In a parallel effort to curb economic crimes, the Federal High Court in Ilorin also recently convicted several individuals for internet fraud. Among them was Oyerinde Sodiq, a 25-year-old photographer, who was found guilty of impersonating one “Vickie Mary” on Telegram to defraud a foreign national of $550. He was sentenced to 300 hours of community service and ordered to refund the remaining $200 or serve an additional two months in prison.
Another individual, Ibrahim Aranfajo, a phone vendor, received a similar sentence for a separate cyber fraud case. Meanwhile, Maruf Babawale was sentenced by Justice Haleema Saleeman of the Kwara State High Court to six months’ imprisonment or a ₦200,000 fine, in addition to the forfeiture of his iPhone and restitution of $300 to his victim.
Analysts believe the spate of recent convictions reflects growing judicial support for enforcement efforts across both the extractive and cybercrime spaces.
Despite Nigeria’s resource wealth, the solid minerals sector remains largely under-regulated and poorly monitored. According to the Nigeria Mining Cadastre Office (NMCO), as of January 2025, over 7,000 mining licences had been issued by the federal government. However, fewer than 1,000 sites were actively operational nationwide.
This discrepancy has raised concerns over idle licences, speculative holdings, and the regulatory failure to ensure compliance by licence holders.
Nonetheless, data from the Ministry of Solid Minerals Development shows that the sector generated ₦6.96 billion in mining fees and royalties in the first quarter of 2025 alone underscoring the enormous revenue potential that could be realised with improved oversight and formalisation.
Experts argue that the gap between issued licences and active mining operations reflects deeper institutional weaknesses, including insufficient inspections, porous regulation, and overlapping jurisdiction between federal and state agencies.
The conviction of Olamilekan Basit may represent a small but symbolic step towards accountability in Nigeria’s troubled solid minerals sector. However, the persistence of illegal mining, smuggling, and regulatory failures continues to cost the country billions in lost revenue, worsen insecurity, and deny citizens the developmental dividends of their natural endowments.
Until enforcement is matched by structural reform, the question remains: Can Nigeria reclaim its buried wealth before it disappears one truckload at a time?