Nigeria’s gold reserves remained unchanged at 21.37 tonnes from the fourth quarter of 2023 to the first quarter of 2024. This stability highlights a stagnant trend in gold mining activities, with no significant increase in the country’s reserves.
Nigeria’s gold reserves peaked at 21.46 tonnes in the fourth quarter of 2020, reflecting a brief period of growth, but have since remained steady at 21.37 tonnes.
The lowest recorded reserves were in the second quarter of 2000, also at 21.37 tonnes, indicating minimal long-term fluctuation. From 2000 to 2024, Nigeria’s gold reserves have consistently averaged 21.37 tonnes, underscoring the need for enhanced exploration and mining initiatives to boost the country’s gold production and increase its reserves.
Despite the promising prospects, the gold mining industry in Nigeria faces numerous challenges that hinder its growth and development. Illegal mining is a major issue, with a significant portion of gold production coming from unregulated and environmentally harmful operations. Two Chinese nationals were detained by Zamfara State police in April 2020 on suspicion of engaging in illicit mining in the Bukkuyum locality, where the federal government had outlawed all mining operations in order to reduce armed bandit killings. Operatives of the Economic and Financial Crimes Commission (EFCC) detained a Chinese national in September 2022 in Ilorin, Kwara State, while he was in possession of a truckload of minerals that may be lepidolite in nature.
Thirteen other Chinese nationals were detained by the EFCC in July of last year on suspicion of indulging in illicit mining. A month later, the illegal mining firm in Akwa Ibom State run by Chinese nationals was shut down. The company was unable to produce the authorisation paperwork needed to mine titanium ore. The company was unable to produce the authorisation paperwork needed to mine titanium ore.
Inconsistencies in policy have caused disarray in mining sites and activities over time. A significant amount of government revenue has been lost due to smuggling, serious ecological damage, the spread of diseases, inefficient manual mining practices, and illegal trafficking of highly valued minerals due to the absence of comprehensive legislation. This has made it easier for international organised crime to take advantage of illegal minerals.
Besides infiltration by Organised crime These illicit activities deprives the government of revenue, exacerbates environmental degradation, and creates social tensions. Infrastructure deficiencies, such as poor roads, inadequate power supply, and lack of water resources, hamper mining operations and increase production costs. These challenges limit the industry’s competitiveness and discourage potential investors. Moreover, the operating environment is often characterised by insecurity, with threats from armed groups and criminal activities posing risks to miners, investors, and communities.
Environmental concerns are another critical challenge. Gold mining can lead to deforestation, soil erosion, and water pollution if not properly managed. The use of harmful chemicals in the extraction process can contaminate water bodies and pose health risks to local populations. To ensure sustainable development, it is imperative to implement strict environmental regulations and promote responsible mining practices.
