From Femi Mustapha, in Kaduna
Stakeholders have called for urgent action to address the illicit financial flows in Nigeria’s solid minerals sector, estimated to be worth billions of dollars.
The call was made at a public presentation of a research report on the enablers of illicit financial flows in the sector, organized 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), today in Abuja.
The research report revealed that Nigeria accounts for 35% of all illicit flows from Africa, with 93% of these flows occurring through the extractive industry.
The event aimed to provide a platform for stakeholders to discuss the findings and recommendations of the research report and identify ways to address illicit financial flows in the mining sector.
Speaking at the event, Rev. David Ugolor, Executive Director of the Africa Network for Environment and Economic Justice (ANEEJ), said the problem is embedded in weak data systems, fragmented institutional mandates, cash-based transactions, and insufficient oversight.
Ugolor highlighted the challenges posed by artisanal and small-scale mining (ASM), which provides livelihoods for millions but remains informal and lacks traceability, making it vulnerable to exploitation.
He called for strengthened beneficial ownership transparency, improved production-export reconciliation, enhanced inter-agency data sharing, formalization of ASM, and tighter Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) controls.
ANEEJ is working with the Nigeria Extractive Industries Transparency Initiative (NEITI) and other partners to address the issue and ensure that Nigeria’s mineral wealth benefits all citizens.
”Illicit financial flows are not just a technical or financial problem; they represent lost revenue for development, weakened institutions, environmental destruction, and, in some cases, direct threats to national security,” he said.
The Minister of Solid Minerals Development, Dele Alake, in his remarks, emphasized the need for stronger governance and transparency in Nigeria’s solid minerals sector to address the challenges of illicit financial flows, revenue leakages, and environmental degradation.
Represented by the Director (Finance & Accounts), Peluola Temitope Olusegun, the Minister said the sector holds tremendous promise for Nigeria’s economic diversification, job creation, and regional development, but faces serious governance and regulatory vulnerabilities.
The Minister identified weaknesses in licensing controls, opaque ownership structures, and under-declaration of mineral values as some of the factors enabling illicit financial flows in the sector.
He said the Federal Government is repositioning the solid minerals sector through stronger governance, tighter regulation, improved institutional coordination, and technology-driven oversight, adding that efforts are underway to formalize artisanal and small-scale mining and improve production monitoring and mineral traceability systems.
The Minister emphasized the importance of inter-agency collaboration and beneficial ownership transparency in addressing the challenges facing the sector, and called for collective action to clarify institutional responsibilities and strengthen oversight mechanisms.
The Executive Secretary of NEITI, Hon. Musa Sarkin Adar, also emphasized the importance of addressing illicit financial flows in the sector, calling them critical to Nigeria’s economic development.
Adar said the research directly addresses one of the most pressing governance challenges facing Nigeria’s extractive sector and the entire economy, noting that Nigeria accounts for 35% of all illicit flows from Africa, with 93% of these flows occurring through the extractive industry.
”The limited integration of solid minerals data across government institutions, including mining regulators, revenue authorities, and border agencies, reduces the effectiveness of monitoring and enforcement and weakens the state’s ability to detect and prevent illicit financial practices,” Adar said.
He emphasized that NEITI is committed to promoting transparency and accountability in the management of Nigeria’s extractive resources and will work with ANEEJ to ensure that the outcomes of the dialogue translate into concrete reforms.
The research report highlights the need for enhanced transparency across the entire extractive value chain, including license allocation, beneficial ownership disclosure, production and export data, revenue collection, and inter-agency data sharing.
Adar said the 2023 EITI Standard recognizes transparency as a critical tool for exposing the structural weaknesses and opacity that enable illicit financial flows.
He reiterated that NEITI will continue to align its reporting and policy engagement with these requirements, especially in the solid minerals sector, where governance gaps remain pronounced.
Similarly, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has emphasized the need for strengthened transparency and accountability in Nigeria’s solid minerals sector to combat illicit financial flows.
Delivering a goodwill message at an event, the Chairman of ICPC, Dr. Musa Adamu Aliyu, SAN, said corruption and illicit financial flows are mutually reinforcing. While corruption enables illicit flows, illicit flows provide resources that sustain corrupt networks.
Aliyu identified six key areas that require attention: strengthening transparency and traceability across the solid minerals value chain, using data as an accountability tool, improving coordination among relevant institutions, prioritizing transparency on beneficial ownership, safeguarding legitimate business, and engaging communities in the fight against illicit financial flows.
He stressed that a credible traceability regime, supported by verifiable documentation and technology, will significantly reduce the room for manipulation, concealment, and misrepresentation.
The ICPC Chairman also stressed the importance of inter-agency coordination, saying that illicit actors exploit gaps between agencies, duplications of effort, delayed information-sharing, and inconsistencies in enforcement.
Delivering a goodwill message on behalf of the CEO of NFIU, Dr. Biola Shotunde, Chief Operating Officer (Law Enforcement, Support and Coordination Sector) of the Nigerian Financial Intelligence Unit (NFIU), reaffirmed her organization’s commitment to combating illicit financial flows in the solid minerals sector.
Shotunde emphasized that illicit financial flows continue to undermine revenue mobilization, governance, and development outcomes in Nigeria, particularly in resource-rich economies.
She stressed the importance of embedding Anti-Money Laundering, Counter-Terrorist Financing, and Counter-Proliferation Financing measures across the entire solid minerals value chain, saying it is crucial to identify, track, and disrupt illicit financial flows.
The NFIU, she said, has established an Extractive and Environmental Crimes Section to generate financial intelligence, support parallel financial investigations, and provide operational assistance to law enforcement agencies.
Shotunde called for targeted policy reforms, strengthened inter-agency collaboration, capacity building, timely intelligence sharing, and improved data systems to combat illicit financial flows in the sector.
The NFIU, she said, is committed to working closely with partners to address the issue and ensure that Nigeria’s solid minerals sector contributes to the country’s economic development.
The stakeholders called for specific, implementable, and measurable reforms to address the issue, including identifying high-risk points for illicit financial flows, improving integrity and reconciliation, strengthening inter-agency coordination, and implementing transparency measures that enhance accountability.
The event was attended by stakeholders from government, civil society, and the private sector, providing a national platform for multi-stakeholder dialogue to identify critical policy, legal, and institutional reforms to strengthen transparency and accountability in the solid minerals sector.
