The Minister of Solid Minerals Development, Dele Alake, has acknowledged that the federal government’s efforts to regulate gold mining in Nigeria are being hindered by political, social, and cultural challenges.
Despite the constitutional authority of the federal government over mineral resources, state governments exert significant influence due to their control over land under the Land Use Act.
Alake made these remarks after a Federal Executive Council meeting in Abuja, emphasizing the need for cooperation between federal and state governments
Alake stated “There is a sensitivity given the peculiarity of our environment – political, social, and cultural – which we recognize. I will not be the one to heat up the polity unnecessarily.”
Alake noted that the federal government loses trillions of naira annually due to unregulated and illegal mining activities across Nigeria.
The Minister revealed that the FEC has approved ₦2.5 billion for the procurement of an integrated solution framework to combat illegal and unregulated mining activities across Nigeria.
He acknowledged that while mineral resources fall under the exclusive jurisdiction of the federal government, state governments continue to exert influence over mining activities due to their control over land.
He said that his ministry has chosen dialogue and collaboration with state governors over confrontation in addressing challenges in the mining sector.
““I have met the governors. I’ve had a meeting with 32 of them at their secretariat, organized by the chairman of the Governors’ Forum, the Governor of Kwara. Some of them feigned ignorance of this constitutional separation of powers, even though they have attorney generals,” Alake stated.
He explained that despite the legal clarity that mineral resources belong to the federal government, state governments still exercise a level of control due to their ownership of land under the Land Use Act.
Alake stated that miners are required to obtain consent from host communities before being granted federal mining licenses. This requirement, combined with state governments’ control over land under the Land Use Act, has contributed to regulatory challenges and tensions in the sector.
To ease these tensions and encourage state participation, the federal government has introduced Special Purpose Vehicles —state-owned companies that can apply for mining licenses.
“I announced to the governors that they could form an SPV to apply for a mining license in their own state, and I will approve it. This way, they feel a sense of belonging, and it is a win-win situation for the federal government, the states, and host communities,” he said.
