by Steven Kefas
stevenkefas@gmail.com
Nigeria sits atop an estimated $750 billion worth of mineral reserves scattered across its 36 states, representing one of Africa’s most promising mining frontiers. With the government’s ambitious drive to diversify the economy beyond oil dependency, the solid minerals sector should be a cornerstone of national prosperity. Instead, it has become a testament to how regulatory negligence, endemic corruption and the dangerous prioritization of foreign investment over due diligence can transform economic opportunity into national crisis.
The story of Colin Ikin perfectly encapsulates Nigeria’s mining predicament. The Australian executive is currently courting officials in Ministry of Solid Minerals Development, Mining Cadastre office,Kaduna and Nasarawa states with promises of $300 million in solid minerals investment and lithium processing facilities. State governments are rolling out red carpets, eager to showcase foreign investment victories. Yet Ikin’s track record tells a starkly different story – one of spectacular corporate failure that cost investors nearly $750 million, allegations of criminal activity in Zimbabwe, and a pattern of regulatory exploitation across Africa.
What makes the Ikin case particularly troubling is not just his individual history, but what it reveals about Nigeria’s approach to mining sector development. In their desperation for foreign capital, Nigerian authorities have created what critics describe as a “safe haven for foreign criminals” in the mining industry. The consequences extend far beyond economic loss – they have created conditions that directly threaten national security.
A Continental Pattern of Regulatory Capture
Zimbabwe’s former Chairman of mines and energy, Temba Mliswa, has documented similar concerns about foreign operators exploiting weak regulatory frameworks across Africa. “A peculiar case of Colin Ikin, a dodgy mining mogul, has raised my interest. Why does government seem hell-bent on protecting rogue white business people in this country?” Mliswa questioned, highlighting a broader continental challenge that Nigeria has failed to heed.
According to Mliswa’s documentation, Ikin faces serious allegations in Zimbabwe, including criminal activity reported to police, forgery of bank documents, and illegal withdrawal of funds. “This time around he is alleged to have forged bank documents and went ahead to illegally withdraw US$10,000 from an Afrocash Micro NMB account,” Mliswa noted, describing police cases for fraud and forgery of company documents.
The Zimbabwean experience offers stark warnings that Nigeria continues to ignore. As Mliswa observed, “It seems we are intent on becoming a safe haven for foreign criminals,” while “our own people are constantly faced with the rough edges of the law to the point of being second-class citizens.” This regulatory capture – where foreign operators receive protection despite questionable practices – has become the hallmark of Nigeria’s mining sector.
The Mining Cadastre Office: A National Security Threat
At the heart of Nigeria’s mining crisis lies the Mining Cadastre Office (MCO) at House 37, Lobito Crescent in Abuja. According to mining title holder Biliyaminu Surajo, the MCO has become “a threat to national security due to endemic corruption and professional misconduct.” This is not hyperbole – it is an assessment based on years of observing how regulatory failure creates conditions for both economic exploitation and violent conflict.
The June 19, 2025 stakeholder engagement session revealed the depth of these institutional problems when participants aired a “litany of complaints about the MCO from demanding fees when tenement holders did not have access to their tenements to extended delays in granting titles.” More damaging still is the practice of issuing overlapping titles, creating conflicts that often escalate into community violence.
“The mining cadastre office has the habit of issuing titles over existing valid titles,” explained one industry source. “Community leaders are faced with competing interests with both parties holding title documents from the MCO, each signed by the Director General Simon Nkom.” When communities discover that multiple operators hold certificates of title for the same land, when mining commences without proper consultation, the inevitable result is conflict, says a mining executive who preferred to stay anonymous to avoid persecution.
The corruption appears systematic and commercialized. “There is one officer in the MCO who has supplied more than 50 fake consents, for a fee of course, and the applications were processed successfully,” according to internal sources. The speed of tenement processing has become “proportional to the amount the applicant is willing to pay extra for facilitation.” This isn’t just corruption – it’s the systematic breakdown of regulatory oversight that creates ungoverned spaces, as the executive described it.
The tragedy for Nigeria is that this security crisis was entirely predictable. When regulatory agencies fail to properly monitor mining activities, when titles are issued without adequate community consultation, and when operators are allowed to commence activities without proper security assessments, chaos becomes inevitable. The MCO’s failures have not just facilitated economic exploitation – they have inadvertently become accomplices to national insecurity.
International Embarrassment and Costly Consequences
Nigeria’s mining promotion efforts have become an international embarrassment that compounds the economic and security costs of regulatory failure. At major international mining conventions, Nigerian delegations consistently fail to present viable projects. According to Ibadan-based mining engineer Adams Olawole, the Ministry of Solid Minerals Development and the MCO have “NEVER presented a world class project, mining project, to be exact, in the last 12 years.”
At the recent PDAC 2025 convention in Canada, Nigeria arrived with one of the largest delegations of course but nothing to present. No projects, no investors presentations. “My brother, MSMD/MCO was just there sharing flyers in Canada” says a mining executive present at the event. This contrasts sharply with countries like Ghana and South Africa that bring CEOs of successful operations to share genuine success stories.
The regulatory failures are also generating costly international legal challenges. Jupiter Lithium Ltd’s threatened arbitration against Nigeria through the International Centre for Settlement of Investment Disputes (ICSID) represents the third potential international arbitration case, following disputes with Korea National Oil Corp and Italian oil giant ENI. Each case carries significant financial risks and further damages Nigeria’s reputation as an investment destination.
The Technology Deception
The broken regulatory framework has created opportunities for technological exploitation that compounds Nigeria’s losses. Chinese operators are “building obsolete technologies already being rejected by western countries, because recovery is 50% at most. They dump them in Nigeria and claim they built $200m processing plants.”says Engr Olawole.
This technological deception represents a double theft – Nigeria loses both its mineral resources and the opportunity for genuine technological advancement. While officials celebrate the construction of processing plants, the reality is often substandard equipment that maximizes short-term extraction while providing minimal value addition or technology transfer. The associated environmental damage is a national outcry. “Has anybody even bothered to check how much it costs? No. Or it’s a matter of grease our palms by government officials,” Olawole asked pointedly.
The Path to Recovery
The choice facing Nigerian authorities is stark: continue down a path that has already necessitated mining bans in multiple states due to security concerns, or implement comprehensive reform that addresses the root causes of both economic exploitation and violent conflict.
Reform must begin with the complete restructuring of the MCO. House 37, Lobito Crescent has become synonymous with corruption, unprofessionalism, a totally dysfunctional cadastre system and regulatory failure. The agency needs new leadership, robust oversight mechanisms, and a mandate that prioritizes national security and community welfare over short-term revenue generation.
Due diligence processes must become mandatory and rigorous. Background checks on foreign executives should include criminal record searches, verification of claimed financial resources and assessment of track records in previous operations. The Australian Securities Exchange provides extensive documentation of corporate failures that should inform Nigerian decision-making – there is no excuse for regulatory ignorance.
Countries like Ghana, Botswana, and South Africa have built thriving mining sectors precisely because they maintain these standards. They understand that sustainable mining development requires partners with proven track records, adequate financing, and genuine commitment to responsible operations.
A National Security Imperative
Nigeria’s mineral wealth belongs to its people and future generations. The regulatory failures that have turned mining sites into bandit hideouts in Niger, Taraba, Benue and Zamfara states represent more than policy mistakes – they constitute a betrayal of the national trust. With international arbitration threats mounting, domestic security crises spreading, and the country’s mining reputation in tatters, the window for course correction is rapidly closing.
The reform of Nigeria’s mining sector is not just an economic imperative – it is a national security necessity. The next bandit attack on a mining community should not be required to focus minds in Abuja. The time for comprehensive reform is now, before more states are forced to suspend mining activities to restore peace and before more foreign criminals find safe haven in Nig
eria’s broken regulatory system.