Nigeria is richly endowed with mineral resources, and gold stands out as one of its most promising yet underdeveloped assets. For decades, crude oil has dominated national earnings, but emerging geological studies and recent mining reforms suggest that gold could become Nigeria’s next major source of foreign exchange, potentially rivalling petroleum in the future.
Across the country, gold deposits stretch through multiple belts, appearing in Zamfara, Osun, Kaduna, Niger, Kebbi, Katsina, Oyo, Cross River, Bauchi and parts of the Federal Capital Territory. Zamfara remains one of the richest known belts, while Osun’s Ilesha axis hosts commercially viable reserves and is already attracting structured mining activity. Although verified figures vary, estimates indicate that Nigeria has over 200 metric tonnes of inferred gold deposits, suggesting substantial wealth beneath the soil that has yet to be fully explored or commercially harnessed.
Despite this potential, Nigeria’s gold sector continues to struggle with deep-rooted challenges. Mining remains largely informal and artisanal, resulting in unsafe practices, revenue loss and environmental damage. Insecurity in parts of the north-west disrupts mining and discourages investment, while inadequate geological data and limited industrial-scale mining capacity restrict large-scale operations. These obstacles have slowed the country’s ability to recognise and convert its true mineral value.
However, the landscape is beginning to change. The government has launched initiatives to formalise artisanal miners, improve geological mapping and enhance security around gold-bearing regions. Nigeria has established refining capacity and, significantly, the Central Bank has begun purchasing domestically produced gold for reserve purposes. This development reflects a strategic shift towards diversifying monetary assets and building gold-backed reserves, an approach used by nations like Ghana, Russia and Turkey to strengthen currency stability.
As reforms advance, gold could become a major foreign exchange earner for Nigeria, providing an alternative to oil and offering resilience against global price shocks. With responsible governance, investment in exploration and better infrastructure, the country’s gold deposits could help reposition Nigeria as a rising mining economy.
Few nations possess the breadth of natural resources that Nigeria holds, oil, gas, bitumen, limestone, lithium, iron ore, coal, uranium, rare earth metals and significant gold belts. Harnessing this wealth could boost economic growth, drive industrialisation and increase global competitiveness.
The future of Nigeria’s gold sector, though challenged, is bright, and if the current momentum is sustained, gold may well emerge as one of Nigeria’s most valuable strategic assets in the coming years.
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