Illegal mining, banditry: Stakeholders demand action as Northern economy bleeds

Illegal mining is rapidly spreading across Northern Nigeria, fuelling a shadow economy sustained by poverty, weak regulation and deepening insecurity, with far-reaching consequences for national growth.

Despite repeated government crackdowns, the practice persists in mineral-rich rural communities where enforcement remains limited and alternative livelihoods are scarce.

Kebbi State governor, Nasir Idris, recently warned that persistent insecurity in the region is severely undermining economic activities, disrupting agriculture and discouraging investment.

His concerns echo growing fears among policymakers and analysts that the North’s economic potential is being steadily eroded.

Chekwas Okorie, former presidential candidate and elder statesman, told BusinessDay that rising banditry and illegal mining are crippling the region’s economic backbone, agriculture.

He noted that the North holds vast potential to drive Nigeria’s economy beyond oil, stressing that properly harnessed agricultural production could rival or even surpass oil revenues.

According to Okorie, widespread displacement caused by violence has forced farmers off their land, significantly reducing food production and export earnings.

“Agriculture, a major employer of unskilled labour, has suffered significantly due to insecurity,” he said.

He further linked the rise in banditry to poverty and lack of education, warning that idle youths are increasingly drawn into criminal networks. Illegal mining, he added, compounds the crisis by funding insecurity while depriving the government of critical revenue.

Similarly, Aminu Yakudima, a Peoples Democratic Party (PDP) chieftain from the North East,, warned that illegal mining and governance lapses could severely undermine the economy if unchecked.

Yakudima lamented that illegal mining in Zamfara, Borno and Kaduna now mirrors oil bunkering in the Niger Delta, diverting revenue, weakening institutions and empowering criminal groups.

He stressed that enforcing transparent and legal processes would boost revenue, create jobs and restore stability.

Bernard Mikko, a former federal lawmaker from Rivers State, also said insecurity is crippling agriculture and threatening the broader economy. He told BusinessDay that many farmers have abandoned their fields for fear of attacks, undermining food security and livelihoods.

“It is the duty of government to protect lives and property,” Mikko said. He noted that failure to do so inevitably affects economic performance.

He recalled that Nigeria sustained itself through agriculture before the discovery of oil and urged authorities to act swiftly to reverse the trend.

Security findings further revealed a direct link between illegal mining and banditry. The Commandant of the Zamfara State Community Protection Guards, DIG Muhammad Shehu Daligent (rtd), disclosed that bandits exploit gold mining as a major source of funding.

“The bandits enslave villagers to mine gold and send agents to sell it on their behalf,” he said. He added that recent operations led to the arrest of eight suspects, while 98 landmines were recovered, highlighting the scale and danger of the network.

According to the Global Initiative Against Transnational Organised Crime, gold has become a key revenue stream for armed groups in North-West Nigeria since 2023. Analysts attribute the surge in illegal mining to rising global gold prices, which have made the trade more lucrative.

Nigeria is estimated to hold about 754,000 ounces (21.37 tonnes) of gold reserves valued at roughly $1.4 billion. However, much of this wealth is lost to illicit operations, often smuggled through porous borders or laundered into legitimate markets.

Experts warn that the implications extend beyond economic losses, intersecting with arms trafficking, insurgency and cross-border crime. In states such as Zamfara, Niger and Kaduna, illegal mining continues to thrive, blurring the line between survival and organised criminal enterprise.

Without urgent reforms, stronger enforcement and improved security, stakeholders warn that the twin threats of illegal mining and banditry will continue to strain Northern economy and weaken the country’s overall development trajectory.