Daily Analysis Nigeria’s SMEs Struggles by Joshua Odey November 5, 2024 Published by Joshua Odey In Nigeria, SMEs contribute approximately 48 per cent to the country’s GDP. It also makes up 84 per cent of Nigeria’s workforce. This shows SMEs’ importance in driving Nigeria’s economic growth and development. However, Nigerian SMEs are struggling, which has implications for the country’s economy. Small and Medium-Sized Enterprises (SMEs) are crucial to developing nations like Nigeria. They are very vital to economic growth. They also contribute significantly to developing countries’ economic output levels due to their vast numbers. SMEs also play a crucial role in job creation and help reduce unemployment, promote innovation, and introduce new products and services. The National Bureau of Statistics 2023 report showed that SMEs numbers went down by 45 per cent across various economic sectors. SMEs numbers dropped from 246,200 in 2020 to 170,098 in 2022. This drastic decline dentures Nigeria’s ambition to become a 1000,000,000,000 economy by 2030. Various SMEs owners listed over-taxation, electricity failure, and insecurity as major concerns of SMEs. These issues contribute to the decline of SMEs and Nigeria’s overall economic growth and prosperity. One reason for Nigeria’s SMEs’ struggles is over-taxation. Nigeria has a complex and difficult-to-understand tax system. Nigeria’s over-taxation or multiple taxation comes from various levels of government on all economic activities and assets. The Federal Revenue Inland Service, which is at the federal level, administers corporate income tax, value-added tax (VAT), and withholding. At the state level are personal income, land use, and consumption taxes. Local government may impose tenement and property taxes. This makes taxpayers, especially SMEs, subject to over-taxation. Also, Nigerians pay over 60 official and 200 unofficial taxes. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr Taiwo Oyedele, stated that more unauthorised taxes affect all SMEs unevenly. This unnecessary and complicated tax burden stifles SMEs’ progress in Nigeria. Approximately 80 per cent of SMEs fail within five years. Over-taxation kills the growth of many SMEs in Nigeria. Access to an uninterrupted electricity supply is vital for SMEs to realise profitability. Nonetheless, Nigeria constantly struggles with adequate and stable power supply. This significantly affects the generation of profits for SMEs and leads to loss of profits. A study on erratic power supply and SMEs in Akwa Ibom state, Nigeria, showed that SMEs owners recorded reductions in profit margins due to erratic power supply. This also led to a reduction in the production and sales of goods and services. These erratic power supplies stagnate the growth and development of SMEs. Inadequate power supply also leads to high operational costs. Nigerians spend ₦3.5 trillion on fuelling generators, making it difficult to effectively do business in the country. The negative impact of inadequate supply has a larger impact on the country’s growth and development. As SMEs struggle to grow due to unreliable electricity supply, this affects the attainability of the country’s sustainable development goals, especially eradicating poverty. Efficient growth and development of SMEs help lift people out of poverty. SMEs can create job opportunities for vulnerable and marginalised groups, spur economic development, and reduce income inequality and poverty. This becomes difficult to achieve with the constant struggles with electricity supply. A strong and secure country will experience economic growth and development. When the property and lives of people are protected, businesses flourish. Nigeria has been grappling with insecurity for more than a decade. Northern Nigeria is struggling with banditry and terrorism. South-eastern Nigeria is struggling to contain the violent secessionist group known as the Indigenous People of Biafra (IPOB). Their compulsory sit-at-home orders make it harder for business owners to conduct business due to fear. This makes the country’s business unconducive for high-level performances. A scholarly study by Joseph Damjuma et al; on the effect of insecurity on SMEs performance in Nigeria found that insecurity issues such as terrorism negatively affected the output, capital utilisation, and value SMEs added to the country’s Gross Domestic Product. The stagnation of SMEs can also increase insecurity. Since insecurity contributes to the stagnation of SMEs growth, this further increases the country’s high unemployment and poverty rate, especially among youths. This makes people who are poor and without jobs vulnerable to recruitment by terrorist groups. As SMEs continue to struggle, fighting insecurity becomes harder because of high unemployment rates and poverty. There is a need for tax harmonisation. The proposal for harmonising taxes promises to ease how businesses operate in Nigeria. The Nigerian government should ensure such a proposal becomes law. Before it is done, there should be relevant engagement with government agencies and business owners on the best way to harmonise taxes in the country. The tax process should be simplified and less cumbersome to foster economic growth and development. A new law that exempts SMEs from paying withholding tax will be fully implemented on the 1st of January 2025. The government should properly evaluate its impact on SMEs two years after its implementation. This will create a better understanding of the strengths and weaknesses of the law and if there is a need for improvement. To combat erratic power supply, expanding mini-grids will ease the means of doing business and help SMEs grow. It has the potential to provide a reliable power supply and can provide decentralised sustainable solutions. However, high the tariff design is troublesome. This is because developers charge high tariffs to cover investment and operational costs. To solve these developers should conduct thorough tariff studies to find a balance between consumers’ affordability and the financial viability of these projects. Innovative financing models such as pay-as-you-go can be utilised. The government will need to effectively combat insecurity in Nigeria. One way to do this is to improve non-kinetic approaches to insecurity. Non-kinetic methods are simply using non-aggressive methods to combat insecurity. Between 2016 and 2017, the use of non-kinetic force led to 2000 Boko Harm members surrendering. Improving this method will be instrumental in combating insecurity. Fostering dialogues can also help fight insecurity. There should be a two-way dialogue between the Nigerian government and IPOB to bring critical solutions and long-lasting peace. November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Three Sentenced To Death In Iran Over Killing Of Top Nuclear Scientist by Joshua Odey November 5, 2024 Published by Joshua Odey Iran’s judiciary says three people have been sentenced to death after a court found them guilty of spying for Israel and involvement in the killing of a top nuclear scientist. Mohsen Fakhrizadeh was killed when his car was ambushed on a highway outside the capital in November 2020. “The preliminary legal proceedings took place in Urmia, where these individuals were sentenced to execution; the case is currently in the appeals process,” Asghar Jahangir, spokesman of the Iranian judiciary, told a news conference in Tehran on Tuesday. “After some investigations, three people out of eight arrested in West Azarbaijan province, were accused of committing espionage for the occupying regime of Israel,” Jahangir said. He added that the three are also “accused of transporting equipment into Iran for the assassination of martyr Fakhrizadeh under the guise of smuggling alcoholic beverages.” The decision came following a “comprehensive investigation”, the Iranian official said, adding that charges against four other suspects are under review. Fakhrizadeh was widely seen by Western intelligence as the mastermind of clandestine Iranian efforts in the early 2000s to develop nuclear weapons behind the facade of a declared civilian uranium enrichment programme – a claim rejected by Iran. Iranian officials say the killing took place when a weapon using an advanced camera and controlled by a satellite zoomed in on the scientist while he was driving outside the Iranian capital. Tehran blamed the assassination on Israel, which has neither confirmed nor denied its involvement. Tensions between Iran and Israel have soared since the war in Gaza started in October last year. The Islamic Republic has been supporting a network of allies across the region, including Hamas and Hezbollah, that are in confrontation with Israel in Gaza and Lebanon, respectively. The regional rivals have also engaged in direct confrontations, with Iran launching a barrage of telegraphed missiles and drones towards Israel in April in response to an air strike widely attributed to Israel that killed senior Iranian officials in Damascus, Syria. In October, Iran launched 180 ballistic missiles at targets in Israel in what it says was a response to the assassination of Hamas leader Ismail Haniyeh in Tehran and the killing of Hezbollah chief Hassan Nasrallah. Israel responded with three waves of attacks aimed at military targets in three Iranian provinces. Source: Al Jazeera November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Killers Of Ugandan Olympian Sentenced to 35 years by Joshua Odey November 5, 2024 Published by Joshua Odey A court in Kenyan has sentenced two men to 35 years each for the murder of Ugandan athlete Benjamin Kiplagat at the end of last year. The Olympic steeplechaser was stabbed to death on New Year’s Eve in the town of Eldoret, known as a top training centre for athletes. “Your actions were cruel to a defenceless person whose life you cut short,” Justice Reuben Nyakundi told Peter Ushuru Khalumi and David Ekai Lokere during the sentencing hearing in the High Court in Eldoret. Kiplagat’s murder shocked people in Kenya, which has seen the killing of a number of other elite athletes in recent years. The judge said that Khalumi and Lokere had followed Kiplagat, who was in his car, and then CCTV footage showed that they had intentionally killed him in a premeditated act. The exact motive for the murder was not clear but at the time of the arrests the police had said it was robbery. On Monday, in an emotional request to the court, the athlete’s mother had asked Justice Nyakundi to hand down life sentences. She talked about how her son, who started his career running barefoot, had worked hard to become an international runner and the family’s breadwinner, the Nation newspaper reports. “My son had 8,000 [Kenyan] shillings ($62; £48) and an expensive mobile phone, but the killers did not take any of the property from him. Their mission was to painfully finish him,” the newspaper quotes her as saying. Despite not acceding to the family’s request for life sentences, they said they were happy with the outcome and that justice had been served. Kiplagat, who was 34 when he died, reached the final of the 3,000m steeplechase at the 2008 Beijing Olympics. He also competed in the following two Games and is the holder of the Ugandan record at the event. Source: BBC November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Gombe Snakebite Hospital Records Highest Cases In Sub-Saharan Africa – PMO by Joshua Odey November 5, 2024 Published by Joshua Odey The Principal Medical Officer of Snakebite Hospital and Research Centre Kaltungo, Dr Nicolas Hamman, has disclosed that the facility treats no fewer than 2,600 snakebite cases annually. Hamman made this disclosure at the facility when members of Rotary International Kaltungo District made a presentation of free anti-snake venom, totalling 80 vials. The PMO, who doubles as the lead epidemiologist at the centre, called for more support from the government, while reminding that “the hospital is a major research hospital.” He added, “We are requesting more Federal Government support, especially as we are the largest consumers of this anti-snake venom in this country. In fact, we regard ourselves as the largest in sub-Saharan Africa, with over 2,600 cases per year. “So, because we consume more anti-snake venom, as such, it is important that we become a site where these anti-snake venoms are produced.” While explaining the challenges involved in treating snakebite patients, Hamman disclosed that the donation would bring the needed succour to patients, saying that the 80 vials would cater to about 120 patients. “On the average, we can say 40 patients technically but based on the advancement of the work that our research and clinical committee in the hospital has been doing, there’s a possibility that we can actually extend treatment to 100 to 120,” he said. He added, “we are requesting more Federal Government’s support, especially as we are the largest consumers of this anti-snake venom in this country. In fact, we regard ourselves as the largest in sub-Saharan Africa with over 2,600 cases per year. “So, because we consume more anti-snake venom, as such, it is important that we become a site where these anti-snake venoms are produced.” While explaining the challenges involved in treating snakebite patients, Hamman disclosed that the donation would bring the needed succour to patients, saying that the 80 vials would cater to about 120 patients. “On the average, we can say 40 patients technically, but based on the advancement of the work that our research and clinical committee in the hospital has been doing, there’s a possibility that we can actually extend treatment to 100 to 120,” he said. The PMO added that between six and eight patients were admitted daily, stressing that 34 were on admission at the moment. “It happens usually during harvesting periods when they are harvesting ground nuts, beans, and during the planting season when they are clearing their farms and also during the period of August and September. But because the rainy season of this year got extended to some point, so, we tend to have more cases during the harvesting period. “ We have 34 patients currently on admission. When someone is brought here, we diagnose the patient to be certain it’s snakebite and the type of snake before we administer anti-snake venom,” he added. On his part, Mohammed Ndus, the Past Assistant Governor of Rotary International, noted that the charity-oriented international organisation assessed the needs of the hospital and it necessitated the donation, adding, “We realised that there are some problems like the shortage of ASV and our people are suffering because there are no drugs to administer to snakebite victims. “In fact, there were no specific drugs in the country for such purposes. That is why this drug is coming in; to meet up with the need assessment, which necessitated this donation.”Reacting to the cost implication involved in the procurement of the 80 vials, Ndus added, “You heard the medical personnel that received the drug say it is over N12 million. This drug in the market now if you are buying it from a proper channel, it is about N170,000 but if you are buying through the wrong channel it could be upto N200,000 and the reason behind this is because the drug is not on ground.” He disclosed further that efforts were on to partner with Bayero University Kano in the local production to improve accessibility in the country, “Bayero University Kano is working on having the drugs to be supplied that is why we are also partnering with a university invitation London on how to get this drugs so we believe that if our plans and strategies come true, it is possible that the drugs will become available in the near future and the prices will drop but for now, there’s absolute scarcity of it and that is why we emphasised on the accountability of the ones that we just brought,” he added. The Rotary leader maintained, “We have been engaging in this exercise just as we did with polio. There are people that when they take this vial of polio, they empty the content and then do not administer it. “The strategies, I can tell you openly is the one that has to do with the accountability of the containers. We will make sure we come to this place to check the containers that are empty, and we’ve already given them a counter book that will take the register of those that will be administered with the drug. This drug, even though it is 80, it is possible for two patients to have one of it and still get treated because of the effectiveness of the anti-snake venom. So, for accountability, we have the medical personnel who have assured us that they will check and make sure that it has not been taken to anywhere.” Also speaking, Engineer Samaila Mohammed, the Immediate Past President of Rotary Club Kaltungo, while equally appealing for the judicious use of the vials, pleaded, ” The vials should be well utilised for those they are meant for.”On his part, the Chairman of Kaltungo Local Government Area, Iliya Suleiman, lauded the spirit behind the donation, stressing that it will cushion his people’s economic challenges. Source: The Punch November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Two Arrested For Stripping Teenage Girls Over Alleged Fowl Theft by Joshua Odey November 5, 2024 Published by Joshua Odey The Police in Ebonyi State have arrested two men for allegedly stripping two teenage girls and flogging them on an allegation of theft. The police vowed to prosecute the suspects to serve as a deterrent to others against taking the laws into their own hands. The teenage girls in a video, which has since gone viral, were stripped naked and made to undergo various dehumanizing treatments over allegations of stealing fowl. They were flogged and forced to parade the community naked with the fowls they allegedly stole. The incident happened in Ojiegbe, Ngbo community in Ohaukwu local government area of the state. The incident was gathered in November 2023, but the video started circulating during the week. Its circulation drew wide condemnation from the public, who described the treatment meted out to the two girls as dehumanizing. They called on security agencies to investigate the incident and prosecute all those involved in the inhuman treatment of the teenage girls. “Share it until it gets to the government authorities. These girls were subjected to inhuman treatment. Criminal cases have legal punishment stipulated in the criminal code. “Anyone caught in this situation should be handed over to the police; this treatment is too much for those small underage girls,” a resident said in the video. On receipt of the complaints, the Police in Ebonyi swung into action and arrested. Dennis Ali and Ituma Sunday, in connection to the incident. Police spokesperson Joshua Ukandu, in a statement, said the duo was the primary suspect in the dehumanizing treatment of the girls. “The Ebonyi State Police Command has arrested Dennis Ali and Ituma Sunday, the primary suspects in a disturbing viral video where two teenage girls were stripped, flogged, and dehumanised. “The incident occurred in November 2023 at Ojiegbe Ngbo community in Ohaukwu LGA”, he said. The spokesperson noted that the arrest is in keeping with the promise by the new Commissioner of Police, Anthonia Uche-Anya, to eradicate trial by ordeal, jungle justice, and self-help in criminal justice.“She reaffirms the command’s commitment to rooting out such practices in Ebonyi State with stakeholder support,” he said. Source: The Nation November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports NDDC Begins Channelisation Of Creek In Bayelsa, Rivers by Joshua Odey November 5, 2024 Published by Joshua Odey The Niger Delta Development Commission has announced the commencement of the channelisation of Kolo Creek, spanning 17 communities from Okarki-Otuogidi to the Ogbia communities in Rivers and Bayelsa states. Speaking at the ground-breaking ceremony in Okarki, Ahoada West Local Government Area, Rivers State, NDDC Managing Director Samuel Ogbuku said the project aims to reduce flooding in surrounding communities and mitigate its impact on the Ahoada axis of the East-West Road. This was disclosed in a statement issued in Port Harcourt on Tuesday by the Director of Corporate Affairs, NDDC, Seledi Thompson-Wakama. Ogbuku stated that the channelisation project would also enhance commercial activities in the area, improve aquatic life, and reduce the threat of water-borne diseases to rural communities. The NDDC chief noted that while the project is costly, the benefits for the communities far outweigh the expense, stating, “We have started the project, and we will complete it on schedule.” Ogbuku explained that the channelisation of Kolo Creek, which serves several communities in Bayelsa and Rivers states, was initiated in response to an appeal from local leaders seeking urgent intervention to clear blockages that could cause severe damage if left unaddressed.NDDC Executive Director of Projects Sir Victor Antai described the channelisation of the creek as a significant achievement of the current Commission management under the Managing Director. Antai added that the NDDC exemplifies President Bola Ahmed Tinubu’s administration’s Renewed Hope Agenda through impactful projects like this one. The Traditional Ruler of Okarki, King Elijah Harry Aduan, commended the NDDC leadership for taking decisive action to resolve the issue of Kolo Creek’s blockage. As a gesture of appreciation, Aduan awarded the NDDC Managing Director a chieftaincy title, naming him “Itonji Oka-Akie I” (light of the people) of Okarki Kingdom. He remarked, “We are delighted as a people and wish to thank the NDDC for initiating the clearing of the creek blockages to ensure a free flow of water that will enhance our economic activities.”In a related development, the NDDC inspected one of the emergency shelters built by the Commission in Otuokpoti community, Ogbia Local Government Area, Bayelsa. Following the inspection, the NDDC Managing Director noted that the Commission is taking proactive steps to alleviate the impact of perennial flooding in the region. Ogbuku explained that the project was developed in response to the recurring flooding challenges faced by Niger Deltans. He noted that the emergency shelter facilities would include essential amenities such as a school, hospital, cafeteria, police post, and recreation centre, providing comprehensive support to communities during periods of crisis. He added, “We have six of these facilities currently under construction in Otuokpoti and Odi in Bayelsa State, while the ones in Delta State are being built in Patani and Ozorro, with two more in Rivers State.” He also mentioned that the emergency shelters, designed to accommodate over 1,000 people, would serve as temporary refuges during flood emergencies, stating, “When completed, these shelters will offer temporary accommodation and essential services to communities in times of emergency.” Source: The Punch November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Driver killed As Police Rescue 23 Kidnap Victims In Niger by Joshua Odey November 5, 2024 Published by Joshua Odey A driver identified as Emeka was killed by suspected kidnappers who abducted five passengers on a journey from Kebbi State to Asaba, Delta State. The tragic incident occurred on Sunday between Kwana-Barau and Kundu village in Niger State. The suspected kidnappers reportedly attacked the vehicle, a Toyota with registration number LND 863 YF, and fatally shot Emeka, the driver, before abducting four passengers. In a related operation, the Niger State Police Command announced the rescue of 19 passengers who had been kidnapped while travelling from Sokoto to Bayelsa. The passengers, who were attacked by kidnappers on November 1, 2024, were in a Toyota Bus with registration number LG 08 DGS when they were intercepted along the Tegina-Zungeru road in Niger State and taken into a nearby forest. The spokesperson for the Niger State Police Command, Wasiu Abiodun, confirmed the incidents in a statement on Monday, noting that the victims in both cases were rescued unhurt. “On November 3, 2024, at about 6 a.m., it was reported that suspected kidnappers attacked a vehicle with registration number LND 863 YF travelling from Yawuri in Kebbi State to Asaba, Delta State. “The incident took place between Kwana-Barau and Kundu village, leading to the abduction of five persons and the unfortunate death of the driver, Emeka,” Abiodun stated. He explained that a joint security tactical team responded swiftly, combing the Kattako forest in Rafi Local Government Area.“Four of the abducted passengers were rescued unhurt, and efforts are ongoing to secure the release of the remaining victim still in captivity,” he added. In the case of the 19 passengers abducted from the Sokoto-Bayelsa journey, Abiodun said that intense pressure by the joint security forces led to the safe rescue of all passengers. “Immediately after the November 1 attack, security operatives pursued the kidnappers, leading to the recovery of twelve victims on November 2 in the Pangugari forest, Rafi LGA,” he added. Further operations saw the rescue of the remaining seven victims later that evening, bringing the total number rescued to 19.“The victims received medical care at a nearby clinic and were safely returned to Sokoto on November 3,” Abiodun disclosed. Source: The Punch November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Kano Gov’t Probes Alleged Assault On Doctor By Commissioner by Joshua Odey November 5, 2024 Published by Joshua Odey The Kano State Government has launched investigation into allegation of assaulting a female doctor at Murtala Muhammad Specialist Hospital by the Commissioner for Humanitarian Affairs, Hajiya Amina Abdullahi. The incident, which occurred on November 1, 2024, has stirred outrage among healthcare professionals with the state chapter of the Nigerian Medical Association (NMA) issuing a 48-hour ultimatum to Governor Abba Yusuf to dismiss the Commissioner. Commissioner for Health in the state, Dr. Abubakar Labaran, announced the government’s commitment to resolving the matter, stating that the Ministry of Health has formed a committee to look into the incident and is expected to submit a comprehensive report within 48 hours as directed by Governor Yusuf.“We have formed a committee to investigate the incident, and the case will be resolved amicably,” Dr. Labaran stated. Leadership reports that in a letter addressed to Governor Yusuf, the NMA demanded the immediate removal of Hajiya Amina, describing the attack as a grave violation of ethical standards.“It is troubling that a public official would assault a healthcare worker who is serving under challenging conditions, including understaffing and limited resources,” the NMA’s statement read. The association further threatened to withdraw its services from the Murtala Muhammad Specialist Hospital if no measures were taken within 48 hours. Dr. Labaran acknowledged the NMA’s concerns and said discussions have been held with the association to address the issue. He assured that the ministry’s findings would soon be presented to the governor while emphasising that the matter was being handled with the seriousness it deserves. Source: Leadership November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
News Reports Police Nab Man For Allegedly Beheading Father Inside Farm by Joshua Odey November 5, 2024 Published by Joshua Odey Osun State Police Command has arrested a suspect, simply identified as Saudi, for allegedly beheading his father inside a farm. The incident which occurred in Ilusi village left the villagers surprised being the first time such incident will happen in decades.It was gathered that the deceased popularly called Baale went missing on Thursday, having left home for the farm earlier in the day. A source in the village, Ismail Olaolu, told Vanguard that a search team discovered his headless body at the farm the following day, Friday, covered with palm leaves. “The search team, mainly youth from the village suspected the deceased’s son, with whom he left for the farm the previous day. He was questioned and after some torture, he confessed to having killed his father.“The deceased motorcycle and his cocoa harvest were found beside his body on the farm. The suspect was later handed over to the police for investigation.”When contacted, Osun police spokesperson, Yemisi Opalola said she had been briefed and the suspect was still in police detention for further investigation. Source: Vanguard November 5, 2024 0 comments 0 FacebookTwitterPinterestEmail
Daily Analysis Africa’s Illegal Gold Mining Menace by Joshua Odey October 29, 2024 Published by Joshua Odey Africa has around 30 per cent of the world’s mineral reserves, 8 per cent of the world’s natural gas, and 12 per cent of the world’s oil reserves. Gold is one of the continent’s most profitable mineral resources. In 2021, Africa produced 680.3 metric of gold. Yet, its people have not felt the profitability of gold. In 2024, approximately 429 million of its population live below the extreme poverty of $2.15. Since its population is approximately 1.4 billion, roughly a third of the population is extremely poor. Illegal gold mining is widespread in the continent and has significantly contributed to poverty and other problems such as organised crime, economic loss, and environmental degradation. Illegal mining of gold creates an environment for organised crime to flourish in Africa. It generates enormous profits and is attractive to organised criminal groups. Moreover, its high-value-to-volume ratio creates anonymity and the ability to move financial assets globally quickly. Gold has a reliable inherent value and is a viable option to settle debts. This allows criminals to launder illegal proceeds from gold and turn them into legitimate commodities. According to the United Nations Office on Drugs and Crime, criminals are willing to pay 105-110 per cent above the international market price to launder illicit proceeds and access international banks and markets. African countries have struggled with illegal gold mining as organised criminal organisations get into illegal gold mining. For instance, in Nigeria, the Zamfara state police arrested two Chinese nationals for allegedly taking part in the illicit extraction of gold. In July 2023, the Economic and Financial Crime Commission of Nigeria arrested 13 Chinese nationals for allegedly partaking in the illegal mining of gold. Russians are also involved in illegal mining through the help of politicians and locals. Other African countries, such as South Africa, struggle with this issue as well. Illegal mining of gold has led to substantial economic loss for the continent. A non-governmental organisation, Swissaid, reported that 321-474 tons of gold produced from illegal mining go undeclared yearly. At least 435 tons of gold from illicit activities are smuggled out of the continent. These yearly undeclared and smuggled gold are valued between $24-$35 billion. This represents a substantial loss for African states. A country like Ghana loses $2 billion annually to illegal gold mining. Nigeria loses $1.8 billion to illegal mining of gold. Illegal gold mining presents a significant economic challenge to a continent that struggles with extreme poverty. Illegal mining of gold destroys the environment and endangers nature and individuals. In the Central African Republic, waste from the illicit extraction of gold pollutes water bodies in the country, resulting in the loss of floras and faunas. Toxic chemicals such as mercury and cyanide result in air pollution, posing a threat to local communities where gold mining is illegal. It negatively affects the health of individuals. Likewise, Ghana has seen over 60 per cent of its water resources contaminated by toxic chemicals from illegal gold mining. This resulted in hundreds of Ghanaians taking to the streets and urging the government to crack down on illegal gold mining. Existing and consistent policy goes a long way in preventing the illegal mining of gold. However, this is something that some African states struggle with. For instance, in Nigeria, the lack of coherent and consistent policies created chaos and allowed illegal gold mining to flourish. Weak enforcement of regulatory laws also gives way to the illegal mining of gold. The cumbersome process of obtaining a mining license allows unlawful gold mining to flourish. For example, acquiring a mining license in Ghana can take up to three years. However, the productive life span of small-scale mining is usually 6-18 months. These miners also do not have geo-prospecting knowledge and lack capital. Also, there is a disconnect between rules and the realities of mining. Some miners use different techniques and have various expertise in extracting minerals. For instance, in Ghana, the regulatory framework for small-scale miners is not adequately defined and classified. Subsistence miners who use rudimentary tools for mining are subject to the same framework as a person with a more sophisticated tool. Some are unaware of this and may think they may not require a license if their operational activities do not destroy water bodies. Illegal mining has been persistent in Africa because influential people are involved. In countries such as South Africa, there are politicians engaged in illegal gold mining, allowing it to continue relentlessly. African countries need to make comprehensive, consistent, coherent policies around mining. This will mean having a good understanding of the difference between artisanal mining and small-scale mining. Some African countries, such as South Africa, do not have a proper distinction between artisanal mining and small-scale mining. In some other countries, such as Mali, there is a distinction between the two. In Mali, small-scale mining is distinguished from artisanal mining by a permanent fixed installation created once an ore body is formed. The lack of distinction makes room for illegal gold mining. Policymakers in African countries must work with researchers who have extensively studied the artisanal and small-scale mining sectors. This will help policymakers understand the difference and build a sound policy framework incorporating artisanal and small-scale mining. This will help curb illegal gold mining. According to a study on obtaining a mining license, getting a mining license in Africa can be cumbersome. The process for getting a license should consider the short-term and long-term miners. Easing the process of getting a mining license, especially for small-scale miners, will help control and curb the issue of illegal gold mining in Africa. This can be done by implementing digitalisation and technology solutions to make the process easier. There should be proper vetting and registration of mining companies. Proper vetting and an adequate registration process will help guard against foreign companies involved in illegal gold mining. There should be transparency and stakeholder engagement. This allows people to understand the requirements for obtaining a mining license. African countries must enforce existing laws on illegal gold mining and create coherent policies. In Nigeria, the Mineral and Mining Act of 2007 prohibits the exploration and exploitation of minerals without authority. There have been talks about amending the act. Such an amendment should incorporate ASM and clearly define what constitutes illegal mining. African countries should severely punish perpetrators of unlawful gold mining. In response to the protest, the Ghanaian government has implemented new measures to fight against the illegal mining of gold. These new measures should be reviewed to ensure that they effectively curb the gold mining issue. On the regional level, the Economic Community of West African States need to formulate a firm policy around the illegal mining of gold. ECOWAS should coordinate member states to fight against the illegal mining of gold and ensure that each member state complies with the legal framework against illegal gold mining. October 29, 2024 0 comments 0 FacebookTwitterPinterestEmail