The Nigeria’s solid minerals sector has been identified as a primary conduit for Illicit Financial Flows (IFFs), with stakeholders warning that the country currently accounts for a staggering 35% of all illicit outflows from the African continent.
This was revealed during the public presentation of a landmark research report on the enablers of IFFs, hosted by the Africa Network for Environment and Economic Justice (ANEEJ) in collaboration with the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Federal Ministry of Solid Minerals Development with support from the Foreign, Commonwealth & Development Office (FCDO).
The report paints a grim picture of the Nation’s resource management. Of the total illicit flows leaving Nigeria, 93% originate from the extractive industry.
Director of ANEEJ,Rev. David Ugolor, Executive, noted that these flows are not merely accounting errors but represent a direct assault on Nigeria’s future.
The research identified several “enablers” that allow mineral wealth to disappear from the national grid to include ;Weak Data Systems: Fragmented institutional mandates and a lack of real-time data sharing;Shadowy Ownership;Cash-Based Systems, reliance on physical cash for transactions within the Artisanal and Small-scale Mining (ASM) sector.
Representing the Minister of Solid Minerals Development, Dele Alake, the Director of Finance and Accounts, Peluola Temitope Olusegun, assured the public that the Federal Government is repositioning the sector with strategies such as tighter Licensing; Plugging loopholes in the issuance of mining titles, Integrating artisanal miners into the formal economy and Utilizing technology for better oversight and production-export reconciliation.
Chairman of the ICPC,Dr. Musa Adamu Aliyu (SAN) who proposed a six-point recovery plan, emphasized the need for transparency and traceability across the entire value chain while Dr. Biola Shotunde of the Nigerian Financial Intelligence Unit (NFIU) confirmed that the unit is embedding Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures specifically tailored for the mining sector.
Executive Secretary of NEITI, Hon. Musa Sarkin Adar reiterated the institution’s commitment to turning the dialogue into concrete reforms, ensuring that Nigeria’s solid minerals serve as a pillar for economic stability rather than a source of leakage.
Stakeholders concluded with a demand for measurable reforms, including the immediate identification of high-risk points in the mineral supply chain and the implementation of stricter inter-agency data reconciliation to ensure every gram of mineral mined in Nigeria is accounted for.
