According a 2023 report Despite several obstacles, the Nigerian gold mining sector, also known as “the Industry,” has grown significantly in recent years. Nigeria has a lengthy history of gold mining that dates back to the pre-colonial period. But it wasn’t until 2009 that the government started to take meaningful action to advance the industry. This is demonstrated by the government’s resuscitation of the Nigerian Mining Corporation and enactment of the Nigerian Minerals and Mining Act. At the moment, Nigeria produces 0.5% of the world’s gold, the majority of it comes from artisanal and small-scale producers. Because of the government’s encouragement of investment in the industry, it is projected that this number will increase in the medium to long run.
Gold is one solid mineral with immense potential for Nigeria. The country has significant gold reserves, particularly in the North-Western region, but the sector remains largely untapped. in 2020 The World Health Organisation (WHO) classified the coronavirus outbreak as COVID 19. As a result, crude oil prices, which are Nigeria’s main source of foreign revenue, have fallen to less than $30 per barrel. With the sale of crude oil accounting for more than 80% of the country’s revenue, this already portends disaster for an economy heavily dependent on oil.
To fast-track gold production and transform it into a booming market, the Nigerian government can implement several strategic measures: Streamline the licensing and permitting process for both large-scale and artisanal miners. Establish clear and transparent regulations to attract foreign investment and ensure responsible mining practices. Create a conducive environment for local and international mining companies to operate. Invest in road, power, and communication infrastructure in mining regions to facilitate operations and reduce production costs. Improve transportation networks to connect mining sites to processing facilities and export terminals.
Establish mining training institutions to equip Nigerians with the necessary skills for the industry. Support research and development in mining technology and processes. Encourage the establishment of gold refineries and Jewelry manufacturing facilities to increase the value of gold exports. Promote local craftsmanship and design to create high-value gold products. Provide access to financing for small-scale miners through credit facilities and grants. Offer tax incentives to mining companies to encourage investment and reinvestment. Strengthen law enforcement to combat illegal mining and smuggling. Collaborate with communities to promote legal mining and sustainable practices. Participate in international mining conferences and exhibitions to attract investors and buyers. Promote Nigeria as a reliable source of gold through branding and marketing campaigns. By implementing these strategies, Nigeria can unlock the full potential of its gold resources, generate substantial revenue, create jobs, and contribute to overall economic growth.