The “resource curse” thesis, originally proposed by economists Sachs and Warner, illuminates a perplexing paradox: countries rich in natural resources often experience lower economic growth rates and poorer developmental outcomes than those less endowed. This phenomenon is not universally deterministic; rather, it indicates a susceptibility to adverse political, social, and economic conditions. A profound illustration of this thesis is evident in Nigeria’s Zamfara State, where the complexities of gold mining have become dangerously entangled with militancy, thereby fueling a seemingly unending cycle of conflict and obstructing prospects for a peaceful resolution.
Zamfara State, located in Nigeria’s northwestern region, is abundant with significant gold deposits. However, this gold has become more of a curse than a blessing for the state’s inhabitants. The dire circumstances embody the classic resource curse paradigm, where political elites, unscrupulous business individuals, and militants conspire to exploit resources, thereby stifling sustainable growth and development rather than promoting it.
An unholy alliance among disparate actors, including the political elite, illegal miners, and local militias, exacerbates the conflict and undermines peace initiatives. These actors are accused of perpetuating an illicit gold mining trade, the proceeds of which bypass state coffers and the local populace, thereby stoking the flames of further violence. Ethnic warlords, such as Bello Turji, contribute to Zamfara State’s degeneration into a lawless territory, thereby facilitating illicit gold looting for the criminal elements involved.
The repercussions of this troubling arrangement manifest in a breakdown of social order, increased insecurity, environmental destruction, and mass displacement of people. Militancy, sustained by funds derived from illegal gold mining, renders the prospects for peace nearly impossible. This narrative echoes the devastating situations previously witnessed in the Niger Delta, Democratic Republic of Congo (DRC), Sierra Leone, Liberia, and Angola, where valuable resources became instruments of conflict and devastation rather than catalysts for growth and prosperity.
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During my doctoral research, I examined the resource curse thesis with a particular focus on the Niger Delta and similar instances from resource-rich countries in Africa. My findings suggest that if issues related to resource management are not addressed promptly, the situation might escalate beyond easy redemption.
It is crucial for the National Security Adviser to prioritise and address the interconnectedness of gold, militancy and political alliances to prevent further escalation. The administration of President Bola Ahmed Tinubu should glean valuable lessons from the Niger Delta, DRC, Sierra Leone and Angola. Drawing from these experiences, the government should formulate a concentrated action plan that aligns with Nigeria’s national security, stability, and economic interests.
By employing a comparative approach, the federal government can identify strategies to disrupt the gold-militant conflict nexus in Zamfara. These strategies are informed by experiences from the Niger Delta and DRC, each of which presents a unique context for managing the resource curse.
In the Niger Delta, the formation of the Niger Delta Development Commission (NDDC) and the execution of the Amnesty Programme were instrumental in managing resource conflict. These initiatives emphasised enhancing local development, generating employment opportunities, and reintegrating ex-militants into society.
In the context of the DRC, international pressure played a significant role in curbing illegal mining and resource pillaging to some extent. Schemes like the Kimberley Process Certification Scheme, designed to inhibit “blood diamonds” from infiltrating the mainstream market, can serve as a blueprint.
For a sustainable resolution to the conflict in Zamfara, a comprehensive approach is required. Here, I propose the following:
Firstly, the establishment of a local development commission, similar to the NDDC, is crucial. Such a body should focus on providing social amenities, creating employment opportunities, and undertaking other developmental projects. This will address the root causes of militancy and discourage the youth from engaging in illegal mining or joining groups led by warlords like Bello Turji.
Secondly, implementing a certification scheme, analogous to the Kimberley Process, for gold is of paramount importance. This will deter illegal mining and trade in “conflict gold,” reducing the profits for militant groups and their associates. The federal government must carefully scrutinise and oversee the activities of foreign companies and their local partners in the mining sector. The process of granting mining licenses should be coordinated between the Federal Ministry of Mining and the Office of the National Security Adviser.
Thirdly, another critical action point revolves around the role of the security agencies, which should be tasked with verifying, auditing, and stringently monitoring existing mining companies. With increasing instances of resource-related conflicts, ensuring the legitimacy and legality of these companies’ operations is not just crucial for economic prosperity but also for national security.
The Chairman of the Federal Inland Revenue Service should reconsider the current tax policy on gold, as it could yield significant benefits. High tax rates often motivate miners to resort to illicit means to export gold. Reducing these taxes may encourage greater adherence to legal channels for exporting gold, bolster the formal economy, and limit the resources available for fueling militancy.
I contend that there is a substantial gap in our knowledge concerning the exact amount of gold mined in Nigeria and taxes paid. The absence of reliable data hampers the formulation of effective policies and allows room for illegal activities. It is, therefore, imperative that the federal government takes decisive action to address this challenge.
The task of dismantling the entrenched interests of elites and their collaborators, who profit from the current chaos, will undoubtedly be formidable. These actors wield significant power, which they will likely use to resist any change that threatens their lucrative arrangements. Nevertheless, for the economic and security stability of our great nation, the government of President Bola Tinubu must confront these challenges head-on. This battle is not just about controlling our resources, but about ensuring the common good and securing a stable and prosperous future for all Nigerians.
Finally, the government should exhibit a strong commitment to enhancing transparency and governance in the gold mining sector, following the example set by post-conflict Angola. Furthermore, locally mined gold should be refined within Nigeria, registered, and certified, reinforcing the internal economy and ensuring legal extraction and distribution processes. The road ahead may be arduous, but can we do it? Yes, we can!
Adam, PhD, wrote from Abuja
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