In the heart of Nigeria’s mineral-rich lands, a silent tug of war is playing out. This is one that pits the federal government’s authority over mining against the states’ control of land. And caught in the middle is a sector brimming with promise but bleeding revenue.
On Monday, the Minister of Solid Minerals Development, Dele Alake, laid bare the growing friction. Addressing journalists after the 24th Federal Executive Council (FEC) meeting at Aso Rock Villa, Abuja, Alake painted a picture of confusion and conflict.
This is a situation where state governors, emboldened by the Land Use Act, take unilateral actions like banning mining activities and sealing off companies, despite mining falling under the exclusive jurisdiction of the federal government.
“I’ve had a meeting with the governors at their secretariat,” Alake said. “Thirty-two were present. Some didn’t even feign ignorance of this constitutional separation of powers. But the reality is, our political, social, and cultural environment makes this a delicate issue. We can’t afford to heat up the polity unnecessarily.”
The tension, Alake explained, stems from two competing laws: the federal government’s constitutional control of solid minerals and the states’ ownership of land. The result? A battlefield of interests and a sector losing trillions to unregulated mining.
Rather than wielding the federal government’s authority like a hammer, Alake has chosen diplomacy.
“Each time a governor comes up with an outlandish policy, I call, I engage, I educate,” he said. “In some cases, we’ve resolved these issues through dialogue. It’s a continuous process.”
The federal government has offered states a way into the sector through Special Purpose Vehicles (SPVs). These are legal entities allowing states to apply for mining licenses and share in the wealth without overstepping jurisdiction. Several states have already received licenses, and President Bola Tinubu has given the green light to fast-track approvals for state-backed mining operations.
“This way, they feel a sense of belonging,” Alake noted. “It’s a win-win for the federal government, states, and host communities.”
But even as diplomacy tries to mend fences, the cost of unregulated mining grows heavier. Trillions of naira have been lost, and the country’s mineral wealth continues to slip through its fingers.
To stop the hemorrhage, the FEC approved a N2.5 billion integrated solution framework. This is a cutting-edge satellite surveillance system that will monitor mining operations in real time.
“This system will allow us to track mining activities, monitor mineral extraction volumes, and enhance security at mining sites,” Alake explained. “It’s a game-changer for governance and transparency in the sector.”
The surveillance technology will be linked to an operations center, including the Mines Marshal Centre and the minister’s office, providing a digital map of mining activities across the nation.
Even before the satellite system goes live, the government has been tightening its grip on illegal mining. Through the Mining Marshals, a dedicated security outfit, over 320 illegal miners have been arrested in recent months. Of those, 150 are undergoing prosecution, and nine have already been convicted.
Foreign nationals haven’t been spared either. Four foreigners involved in illegal mining have been apprehended, prosecuted, and convicted.
“The work is ongoing,” Alake said. “We’re combining technology with enforcement to root out illegal activities and restore order.”
Amid the chaos, the government is also laying the foundation for a brighter future. President Tinubu has appointed Martin Imanite, an Australia-based mining finance expert, as the CEO of the Nigerian Mining Corporation.
The NMC is a state-backed but privately run entity designed to revitalize the sector.
With 50% private sector ownership, 25% federal government shares, and 25% open to Nigerian citizens, the corporation’s structure aims to minimize political interference and ensure long-term stability.
“We headhunted him from Western Australia, one of the biggest mining regions in the world,” Alake said of Imanite. “He brings global expertise that will drive this new initiative forward.”
As for a Solid Minerals Development Bank?
That’s off the table, at least for the government. Alake challenged the private sector to take up the mantle, warning that a government-run institution would inevitably fall victim to political meddling.
For Nigeria’s mining sector, the stakes couldn’t be higher. With trillions already lost and political interests clashing, the path to stability requires delicate negotiation, firm enforcement, and innovative solutions.
Alake remains hopeful. By fostering collaboration between federal and state governments, deploying advanced surveillance, and cracking down on illegal operations, he envisions a future where Nigeria’s mineral wealth fuels development rather than discord.
“This is about more than minerals,” he said. “It’s about building a sector that benefits every Nigerian — transparently, legally, and sustainably.”
Source: Ripples
