Study of Minerals Supply Chain and Revenue Leakages in Artisanal Mining Operations in Taraba State, North East Nigeria

Taraba State in North East Nigeria is endowed with diverse solid minerals including lead, zinc, iron ore, and precious stones, which are predominantly exploited through artisanal and informal channels with significant revenue leakage from the formal economy. This study examines the mineral supply chain structure and identifies specific revenue leakage mechanisms in artisanal mining operations in Taraba State. A supply chain mapping methodology was applied, tracing ore from extraction through to final sale using in-depth interviews with miners, traders, transporters, and buyers across the Takum and Sardauna Local Government Areas. Secondary data on official royalty collection records were obtained from the state minerals office and cross-referenced with estimated production volumes derived from field observation. Findings reveal that informal middlemen intercept approximately 70 percent of ore sales before they reach licensed dealers, effectively bypassing royalty payment obligations. Cross-border smuggling of lead-zinc ore to Cameroon and Benin Republic constitutes an additional major leakage pathway. The study estimates that annual royalty foregone in Taraba State from artisanal mining amounts to several hundred million naira. Recommendations include the deployment of digital mineral tracking systems, formalisation of artisanal mining cooperatives as primary marketing bodies, and bilateral agreements with border countries to combat smuggling. Keywords: supply chain, revenue leakage, artisanal mining, Taraba State, royalty.