Nigeria’s Unregulated Mining Economy: How Illicit Gold Fuels Parallel Power.

In the sun-scorched terrains of northwestern Nigeria, the gold fields of Zamfara and Niger States stretch across vast, dusty landscapes marked by shallow pits, makeshift shelters, and the constant hum of manual labor. For many, mining has become more than a livelihood; it is a parallel economy, largely outside government oversight and formal regulation, generating both opportunities and systemic risks, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).

Health and Security Impacts.

These mining sites are hotspots for severe health and security challenges. Médecins Sans Frontières and the United Nations International Children’s Emergency Fund (UNICEF) report that children accompanying their parents to the pits face high risks of lead poisoning and other toxic effects.

In 2025, a lead-poisoning outbreak in Bungudu Local Government Area affected dozens of children, underscoring how rapidly these hazards escalate without oversight.

Mining communities face compounded vulnerabilities from environmental degradation, contamination from mercury used in gold extraction, and the persistent presence of armed bandits. In some towns, these armed men on motorcycles have attacked mining sites, killing dozens, turning mining zones into contested economic battlegrounds.

Dr. Oluwole Ojewale of Obafemi Awolowo University explains that insecurity fuels illicit mining. Local elites supply weapons, food, and logistics to armed groups, who exert control over pits, dictate prices, and operate a parallel form of governance. This creates a vicious cycle whereby insecurity and illicit profits reinforce each other, leaving communities trapped in exploitation.

Amid these towering challenges, individual lives reveal the everyday reality. Amina, a 32-year-old mother of four, rises before dawn to join other miners at a riverside site in Zamfara, carrying a jerrycan of water, a small pan, and a rubber basin. Her hands tremble slightly as she dips into muddy sediment, washing it gently in the hope of catching tiny gold flakes.

Her story, while illustrative, is typical of thousands in these communities. Ibrahim Musa, a miner from Anka, Zamfara, shared in an interview with The Guardian, “We work hard but live in fear daily. The bandits decide if we earn or lose.”

Maryam Bello, chairperson of a women’s cooperative in Niger State, told Reuters, “We bear the worst, the exposure to toxins while also caring for children and managing households. Mining takes all our strength.”

A local youth leader in Shiroro emphasised to the Nigerian Tribune: “Young boys are dropping out of school to join mining, hoping for quick money, but they face health risks and violence.”

Traditional leaders express similar concerns. The Emir of Anka warned in an interview with Voice of America that communities are losing a generation to mining-linked violence and health hazards, with children growing up seeing bandits as authority figures because of their control over economic lifelines.

These voices, spanning miners, women, youth, and traditional authorities, expose the broad human impact of unregulated mining and highlight the urgent need for protective measures and regulatory enforcement.

Economic losses and the parallel mining economy.

Nigeria loses approximately USD 9 billion annually to illegal mining, according to the House of Representatives. These illicit funds, if captured, could support vital infrastructure such as schools, clinics, roads, and security, particularly in underdeveloped states like Niger and Zamfara.

The House of Representatives’ estimate aligns with the NEITI’s 2023 audit, which highlights that while mining revenue has increased to ₦401.87 billion, it still contributes less than 1% of Nigeria’s Gross Domestic Product (GDP). Weak governance and pervasive smuggling allow a parallel economy to thrive, starving government coffers and deepening regional inequalities.

Economists at the Centre for Development Studies point out that these financial losses exacerbate regional disparities and undermine social services. The drainage of resources through smuggling and parallel operations prevents investments in essential public goods and stalls broader national development goals.

Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, told Daily Trust: “If we fail to act boldly and immediately, others will transform their mineral wealth into prosperity while Nigeria watches.” He emphasised that this parallel economy is not a marginal issue but a structural problem, draining Nigeria of both resources and opportunities for equitable growth.

Criminal Networks and Armed Group Influence.

Behind the pickaxes and pans lies a network of powerful actors. Research by Dr. Oluwole Ojewale at Obafemi Awolowo University highlights a troubling alliance between elites, including wealthy mine owners and politically exposed persons, as well as armed bandits exploiting gold-rich areas in Zamfara and beyond.

This collusion allows illicit mining to flourish while insulating key players from legal and social accountability, according to Dr. Ojewale’s interview with The African Mirror.

According to Dr. Ojewale, some minefield owners supply bandits with weapons, food, logistics, and even drugs in exchange for protection. Bandits are embedded in the economic chain, not merely acting as enforcers, because they actually assess and control access to pits, dictate pricing, and regulate extraction, creating a parallel governance system in these communities. He told The African Mirror: “Without the complicity of local elites, bandits would not maintain such a stranglehold over the gold trade.”

The transnational trade is real and extensive. Gold is smuggled through Chad, Niger, Libya, and Algeria. Wealthy traders and brokers buy the gold, its illicit origins obscured as it leaves the country, as reported by The Cable and detailed in the Swissaid report.

Investigations and reporting further reveal indirect involvement of political and military figures, with Nigeria’s Minister of Solid Minerals, Dele Alake, publicly acknowledging elite financing of bandit groups.

Similarly, Senator Adams Oshiomhole has accused retired military personnel of orchestrating illegal mining operations. This deep embedding of criminality creates a cycle where local insecurity fuels illicit profits, while oversight and enforcement remain weak, according to The Cable and Bloomberg investigations.

The human toll: Beyond Amina.

Amina’s story reflects the struggles faced by mining communities across towns like Anka, Bagega, Shiroro, Gurmana, and Kagara. Families live with invisible but overwhelming consequences. Health workers in Zamfara continue treating children suffering neurological damage caused by lead poisoning, a harsh reminder of the ongoing crisis, as documented by Médecins Sans Frontières and UNICEF.

Mining sites are more than workplaces; they are zones of insecurity where armed bandits, vigilantes, and other non-state actors assert control. Reports from AP News reveal that in some towns, armed men on motorcycles attack mining sites, killing dozens as they battle for control over gold resources. These are not random acts of violence but contested economic battlegrounds.

Ojewale highlights how the alliance between elites and armed groups keeps the cycle of insecurity and illicit mining turning, trapping communities in ongoing exploitation, as he told The African Mirror.

Residents must constantly adapt to survive. Some miners work in shifts to reduce their exposure to dangers, while informal cooperatives negotiate better prices with middlemen. Yet these measures offer little real protection from violence, exploitation, and environmental harm.

A local advocate in Gurmana describes how mining reshapes families, with fathers disappearing to the pits, young boys dropping out of school, and women spending long hours in poisoned waters. She adds that they bury the victims, care for sick children, and try to keep going while others profit, based on interviews collected by Amnesty International and Global Rights Nigeria.

The Emir of Anka warns communities risk losing a whole generation to violence and disease linked to mining, as bandits become the de facto authorities, as reported by The Cable and NAN News.

Widows, orphaned teenagers, and displaced families are forced to scavenge through low-grade tailings, exposing themselves to toxic metals documented extensively by Global Rights Nigeria, underscoring the urgent need for comprehensive reform.

Regulatory Weakness: Why Enforcement Fails.

The Nigerian government is aware of the problem. In April 2025, Minister of Solid Minerals Development, Dr. Dele Alake, ordered all illegal miners in Zamfara to vacate sites following a severe outbreak of lead poisoning in Bungudu Local Government Area. In a statement to Premium Times, he warned that local authorities had failed to enforce mining bans, putting communities at risk.

Dr. Alake announced that all mining activities were on hold until the Ministry publishes Standard Operating Procedures, including reforms on licensing, community development agreements, environmental remediation, and beneficiation; the local processing of minerals to add value. He told The Guardian that mining must contribute to national wealth, not just individual profit.

The government is also deploying satellite technology to monitor mining sites, a step Alake believes will help enforce compliance and shut down illegal operations.

Meanwhile, the National Assembly is considering the creation of the Nigeria Mines Rangers Service through Senate Bill SB253, sponsored by Senator Mohammed Onawo. The NMRS would secure mining sites, enforce environmental and safety regulations, and provide emergency response. Senator Onawo told Daily Post that this is a bold step to curb illegal mining and harness mineral resources for Nigeria’s benefit.

Critics argue that the NMRS duplicates existing security structures. The Minister of Solid Minerals has suggested that strengthening agencies like the NSCDC and integrating technology-driven solutions such as drones and real-time monitoring would be more effective than creating a new force, according to ThisDayLive.

How Communities Cope and Resist.

For miners in Niger and Zamfara, regulatory collapse leaves few safe options. Many continue illegal mining, rotating shifts, working in small family groups, or forming informal cooperatives to negotiate better prices with middlemen, trying to gain some economic agency despite the dangers.

Community leaders are increasingly documenting environmental damage, reporting deforestation, soil erosion, and water contamination. These reports, often shared with civil society organisations and local media, aim to pressure authorities to address the long-term consequences of unregulated mining. Civil society groups, including Global Rights Nigeria, are actively pushing for free, prior, and informed consent, ensuring communities have a legal voice before any mining operations resume or expand.

Despite these efforts, miners and their families remain vulnerable to economic exploitation and violent incursions by armed groups. The lack of enforcement and limited access to healthcare and clean water underscore the urgent need for regulatory oversight, community empowerment, and technological monitoring to reduce health risks and restore some measure of safety.

Environmental and Health Fallout.

The human cost of unregulated mining in Niger and Zamfara remains dire and ongoing. Lead poisoning, mercury contamination, and respiratory illnesses are widespread, particularly affecting children and women who spend long hours at mining sites.

Médecins Sans Frontières reports that children in these communities suffer neurological damage years after exposure, highlighting the lasting health consequences of artisanal mining. A 2023 UNICEF report on Northern Nigeria further underscores the persistent health risks linked to toxic mining pollution.

In 2025, a lead-poisoning outbreak in Bungudu Local Government Area affected dozens of children, illustrating how quickly these hazards escalate without proper oversight, as reported by TheCable.

Mercury used in gold extraction seeps into water sources, contaminating livestock and threatening food security, while deforestation caused by artisanal mining further damages farmland, leaving families with limited alternatives beyond subsistence mining.

Zamfara’s tragic history of unsafe mining is well-documented. In 2017, over 300 children under five died from severe lead poisoning in Yar-Galma village, a catastrophe reported by the Independent Newspaper Nigeria. Dr. Amina Abubakar, an environmental health specialist, has emphasised that without urgent remediation, similar public health crises will continue to occur.

The environmental and health consequences are worsened by pervasive insecurity in mining regions. Armed groups often operate with impunity, forcing miners to face daily physical dangers alongside toxic exposure.

Local civil society organizations, including Global Rights Nigeria, actively document these impacts and call for urgent measures such as environmental remediation, stricter mining regulations, and intensified public health monitoring to protect vulnerable communities.

Policy and Technological Reforms on the Table.

Potential solutions are emerging to address the challenges of illegal mining. The Nigeria Mines Rangers Service (NMRS), if implemented, could establish a professional corps dedicated to enforcing mining laws transparently and with community oversight.

The NEITI advocates sweeping reforms, including the creation of a Real-Time Mining Cadastre Portal, embedding Free, Prior, and Informed Consent (FPIC) into national law, strengthening the Solid Minerals Development Fund, and promoting local processing of minerals to add value.

Ojewale supports additional measures such as the use of border spectroscopy, a technology that can detect smuggled gold at checkpoints, as well as upgraded intelligence infrastructure and sanctions targeting elite complicity.

Satellite surveillance, drones, and geospatial mapping could rapidly identify illegal mining sites, while blockchain tracking would enhance gold traceability and reduce illicit flows. NEITI has reinforced its commitment to enforcement by backing the revocation of over 1,200 mining licenses in 2025, as reported by TheCable.

Charting a path forward: Solutions for Nigeria’s Mining crisis.

As Nigeria faces the entrenched challenges of illegal mining, a clear and coordinated vision for reform has never been more crucial. Nigeria can break the cycle through:

  • Implementing the Nigeria Mines Rangers Service (NMRS) with proper resources and community legitimacy.
  • Scaling technology-driven enforcement, including satellite imagery, drones, spectroscopy, and blockchain tracking.
  • Empowering communities through FPIC and legal recognition of cooperatives.
  • Strengthening transparency with NEITI audits, digital cadastre portals, and reinvestment in host areas.
  • Prioritizing environmental rehabilitation via mandatory mine closure, remediation funds, and enforceable protections for water and soil.
  • Promoting local value addition to keep mineral wealth within Nigeria.

Nigeria’s path forward demands more than policy announcements or committee reports; it requires a coordinated shift in how the country treats its mineral wealth and the communities tied to it. Alake emphasised that technology and licensing reforms will fail without community trust. NEITI has also argued that transparency must evolve from periodic audits to real-time accountability.

Rebuilding state presence in mining zones is central. Strengthening existing mining marshals and aligning them with the proposed NMRS under a unified command could create a security framework that is both responsive and less vulnerable to infiltration. Satellite monitoring, geospatial tools, and drone surveillance can identify illegal pits before criminal networks entrench themselves.

Communities must be partners, not passive victims. FPIC would grant host communities negotiating power before mining begins, while legal recognition of cooperatives would help artisanal miners operate under regulated structures rather than relying on middlemen or armed groups.

Economists told Daily Trust that Nigeria’s minerals generate national value only when processed locally. They recommend refining hubs, beneficiation centers, and small-scale mineral processing zones to reduce smuggling and provide stable incomes for miners.

Environmental recovery is another critical pillar. Without enforced mine closure and remediation funds, the cycle of contamination will continue, repeating tragedies like the mass lead poisoning in Bagega and Yar Galma.

Cross-border intelligence sharing and tools like border spectroscopy, supported by researchers such as Ojewale, offer realistic ways to curb smuggled gold flowing through Northern corridors.

Ultimately, transforming Nigeria’s mineral sector demands political courage. Security agencies, ministries, state governments, and traditional rulers must confront entrenched interests benefiting from the current disorder.

Only through courageous leadership, technological innovation, and genuine community partnership can Nigeria transform its mineral wealth from a source of strife into a foundation for shared prosperity and lasting stability.

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