Small-scale gold mining plays a crucial role in the livelihoods of many Nigerians, particularly in rural areas. Despite its contribution to the economy, the sector faces numerous challenges, including limited access to finance, technology, and formal markets. These constraints hinder the growth and development of small-scale miners. To unlock the potential of small-scale gold mining, it is essential to provide targeted support and capacity building. This includes access to affordable credit, training on modern mining techniques, and assistance in market linkages. By formalizing the sector and integrating small-scale miners into the mainstream economy, it is possible to improve their livelihoods and enhance their contributions to the overall mining industry. Furthermore, promoting sustainable mining practices among small-scale miners is crucial. This involves providing training on environmental protection, occupational health and safety, and the importance of mercury-free gold extraction. By empowering small-scale miners with knowledge and resources, the sector can become more environmentally responsible and socially inclusive.
The main issues with informal mining particularly for Artisanal and Small Scale Mining in Nigeria are: mineral waste; mining operations conducted informally, disregarding established laws and regulations; operators move around from site to site; their activities are disorganized; low productivity, resulting in low returns and revenue; unprocessed mineral sales at extremely low prices; lack of access to financial assistance; lack of technical knowledge regarding geology and mining; inability to meet health and safety standards; high level of environmental degradation; inability to invest in appropriate tools and equipment; social issues, such as child labour and substandard living and working conditions at mine sites; high level of smuggling; and loss of revenue as a result of government.
Nigeria’s success in the economy is closely linked to the expansion of the oil market, as the country’s revenue is primarily obtained from oil exports. However, the necessity for economic diversification is made necessary by the volatility of oil prices, the lack of accountability and transparency in the cash earned, the improper use of the earnings, and the drive towards energy transition. Mineral mining has been shown to be a significant contributor to the GDP of neighbouring African nations such as Ghana and South Africa. For instance, mining is estimated to contribute 5% of Ghana’s GDP and 37% of its exports, but solid minerals in South Africa are responsible for 18% of the nation’s GDP, half of its foreign exchange profits, and around a million employed.
