FEC Moves Against Illegal Mining with N2.5bn Satellite Surveillance System

The Federal Executive Council (FEC) has authorised a N2.5 billion budget to purchase satellite technology to combat the nation’s unlicensed and uncontrolled mining enterprises.

At the end of the FEC meeting, which was chaired by President Bola Tinubu, Alake, the minister of solid minerals development, briefed the State House media.

“The satellite equipment will be installed in strategic locations to provide real-time visual monitoring of mining operations nationwide,” the minister said.

“This technology will enable us to track mineral extraction, monitor truck movements, and assess security conditions at mine sites.

“Our approach has been two-pronged: persuasive and coercive. We have encouraged artisanal miners to form cooperatives, which has led to the formation of over 300 legalised societies.

“However, for those who remain recalcitrant, we have established the mining marshals to apprehend and prosecute illegal operators.

“Once these miners become legalised and structured, they can access financial institutions for loans, expand their businesses, and contribute meaningfully to the nation’s revenue.”

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Dele Alake, The Minister of Solid Mineral Development

According to Alake, authorities would be able to monitor activity at the touch of a button because of the satellite technology’s connection to a central command centre.

The technology would greatly enhance efforts to prevent illicit mining and guarantee the sustainable and responsible utilisation of mineral resources, the minister continued.

Mining Under Siege? States Accused of Disrupting Operations

State governments’ growing meddling in mining operations, according to Alake, is making it more difficult for federal regulators to control the industry.

“There have been cases of interference by states in mining activities. If there is an infraction in a state, the governor must consult us before taking action,” he said.

“We investigate and either act directly or authorise the state to act under federal cover.”

He stated that to stop illicit activities, the government is collaborating with the Ministry of Defence and National Security Advisor Nuhu Ribadu.

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According to Alake, 320 unlawful operators have been apprehended as a result of measures to stop illicit mining.

The minister claims that four foreign nationals have been charged and found guilty, nine have been found guilty, and 150 are being prosecuted.

Alake said that unlawful and uncontrolled mining operations had cost Nigeria trillions of naira. He also asserted that state influence is limiting the federal government’s authority over the gold mining sector, which has resulted in lost income.

According to him, the government is working with state governors to solve the issue and is providing options like special purpose entities (SPVs) to reduce tensions and promote state involvement.

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The minister described the extent of losses as “mind-boggling” and said that Nigeria had lost trillions of naira as a result of underreporting, illicit mining activities, and difficulties in monitoring its large territory.

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“A very elementary, non-scientific estimate we conducted in 2023 immediately after we assumed office revealed trillions of naira lost through unregulated, under-reported, and unlicensed mining activities,” he said.

“You should not ask how much the nation has gotten from gold; you should ask how much the nation has lost in gold. It is humongous, unheard of.”

To address income leaks and improve security, Alake stated that the federal government will implement satellite monitoring equipment within the next month to keep an eye on mining operations nationwide.

The project, the minister continued, will allow the government to monitor activities, even in far-flung areas, find income leaks, and plug them to boost revenue flow.