By Engr Alexander Elemo, MNSE, FIEAust, CPEng.
Small-scale and artisanal mining (ASM) represents a significant, albeit underdeveloped, segment of Nigeria’s mining sector. ASM activities are dispersed across various regions, encompassing diverse minerals such as gold, tin, columbite, and gemstones. These operations are often informal and labour-intensive, employing rudimentary techniques. Despite its challenges, small-scale mining has substantial potential to contribute to Nigeria’s economic growth and sustainable development.
Current State of ASM in Nigeria
Artisanal and small-scale miners account for a considerable proportion of Nigeria’s mineral production. The sector is particularly prominent in gold mining, with substantial activities in states like Zamfara, Niger, and Osun. In Niger State alone, ASM accounts for over 60% of mining operations, focusing on minerals such as gold, tantalum, and beryl. These activities, while significant, remain largely unregulated, leading to inefficiencies and environmental degradation.
The potential economic contribution of ASM is enormous. It provides livelihoods for millions of Nigerians, particularly in rural areas, where it serves as a primary income source. However, despite its contribution to employment, the sector remains plagued by issues such as illegal mining, environmental damage, and health hazards due to unsafe practices.
Economic Contribution
The ASM sector contributes to Nigeria’s gross domestic product (GDP), though its precise impact remains challenging to quantify due to the lack of formal documentation. Small-scale mining activities drive local economies, generating revenue and facilitating trade. Moreover, ASM enhances the availability of raw materials for industries, fostering downstream economic activities.
Globally, ASM contributes significantly to mineral supply chains, especially for commodities like gold. In Nigeria, similar trends are observed, with artisanal gold mining being a key source of the country’s informal exports. However, the lack of formalization prevents the sector from achieving its full economic potential, limiting government revenue through taxation and royalties.
Challenges and Limitations
Informality and Regulation: A significant portion of ASM activities in Nigeria operates outside legal frameworks, leading to inefficiencies and limiting state oversight. The informal nature of the sector hampers its integration into the broader economy.
Environmental Impact: ASM activities often lead to deforestation, soil degradation, and water pollution. The use of mercury in gold extraction poses severe ecological and health risks, affecting local communities.
Social Issues: Child labour and poor working conditions are prevalent in ASM operations. Workers frequently lack access to health care, education, and financial services.
Access to Finance and Technology: Small-scale miners face significant barriers to accessing modern equipment and financial resources, which restricts productivity and sustainability.
Strategies for Maximizing ASM’s Potential
To unlock the full potential of the ASM sector in Nigeria, among several others, these ongoing initiatives by Dr Dele Alake, the Minister of Solid Minerals and Steel Development in conjunction with United Nations Development Program (UNDP), European Union (EU), and Revenue Mobilisation Allocation & Fiscal Commission (RMAFC) are commendable:
Formalization: Establishing clear legal and regulatory frameworks can help integrate ASM into the formal economy. This includes issuing licenses, providing technical support, and ensuring fair trade practices.
Capacity Building: Training miners in modern techniques, environmental conservation, and safety protocols can improve productivity and reduce negative impacts.
Access to Finance: Government and private sector partnerships can facilitate access to affordable credit and equipment, enhancing operational efficiency.
Community Development: Integrating ASM operations into broader community development plans can ensure sustainable livelihoods, improved infrastructure, and education opportunities for local populations.
Technology Transfer: Introducing modern technologies and environmentally friendly mining practices can increase output and reduce ecological harm.
The Future of ASM in Nigeria
Artisanal and small-scale mining has the potential to significantly boost Nigeria’s economic growth if appropriately harnessed. With increased formalization, regulatory oversight, and capacity-building initiatives, the sector could transition from a largely informal activity to a driver of sustainable development. The integration of ASM into formal supply chains would not only increase government revenue but also improve the livelihoods of millions of Nigerians engaged in the sector.
Moreover, learning from successful ASM frameworks in other countries, such as Ethiopia and Ghana, could guide policy reforms and implementation strategies in Nigeria. By addressing critical challenges and leveraging its mineral wealth, Nigeria can transform ASM into a pillar of its economy, fostering inclusivity and sustainability.
Conclusion
While challenges remain, small-scale mining holds immense potential for Nigeria’s economic diversification and rural development. By adopting a multi-stakeholder approach involving government, private entities, and local communities, Nigeria can harness the opportunities presented by ASM, contributing to its long-term economic growth and sustainability.
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