The Minister of Solid Minerals Development, Dele Alake, stated that a large portion of Nigeria’s gold is illegally exported to the UAE, resulting in an annual loss of $9 billion in tax revenue from unreported exports. He advocates for a partnership with the UAE to create regulatory frameworks to combat illegal gold trade and promote legitimate commerce. Ambassador Al Shamsi emphasized the UAE’s commitment to strengthening ties with Nigeria.
The Minister of Solid Minerals Development, Mr. Dele Alake, has disclosed that a significant quantity of gold produced in Nigeria is illegally exported to the United Arab Emirates (UAE). This illicit activity results in substantial financial losses for Nigeria, depriving the nation of crucial tax revenues and royalties that could be collected from legitimate gold exports. A report by the House of Representatives Committee on Solid Minerals indicates that Nigeria suffers a staggering annual loss of approximately $9 billion due to illegal mining operations. To combat this issue, Minister Alake proposed a strategic partnership between Nigeria and the UAE aimed at creating regulatory frameworks that would not only inhibit the illegal gold trade but also enhance economic benefits for both countries. During a meeting with the UAE Ambassador to Nigeria, Mr. Salem Al Shamsi, in Abuja, Mr. Alake underscored that such a partnership would help establish the UAE as a significant trading hub for minerals. Mr. Alake expressed interest in harnessing technological advancements from the UAE to elevate Nigeria’s mining sector. He stated, “In the mining sector, we see significant opportunities for collaboration. While there is considerable trade in gold, much of it remains illegal, with a large portion of Nigerian gold ending up in the UAE unlawfully.” Ambassador Al Shamsi affirmed the UAE’s commitment to strengthening bilateral relations, highlighting recent measures such as the removal of visa restrictions and a landmark Memorandum of Understanding (MOU) between companies in the UAE and Nigeria’s Solid Minerals Development Fund. He remarked, “The lifting of visa application restrictions and the launch of a new visa application website demonstrate my country’s dedication to advancing bilateral relations.” Both nations consented to form a technical committee tasked with exploring collaborative efforts to tackle the illegal mineral trade and foster legitimate commerce. According to a report by SwissAid, a Swiss development organization, the UAE is a principal destination for unreported gold, which frequently acquires legal status upon arrival. The report noted that approximately 66.5 percent of the UAE’s gold imports from Africa were derived from smuggled sources in 2022, accumulating a substantial value of $115.3 billion between 2012 and 2022. Despite Nigeria’s abundant gold resources, estimated at 21.37 tonnes, predominantly located in Northern Nigeria and Osun State, much of its gold revenue remains unrecorded, signaling a glaring gap in the sector’s contribution to national economic growth. According to the National Bureau of Statistics, the mining and quarrying sector only accounted for 7.86 percent of Nigeria’s GDP in the first quarter of 2024. Mr. Alake emphasized that illegal mining is exacerbated by the involvement of foreign illegal miners, which additionally fuels local banditry and violence.
The illegal gold trade represents a pressing challenge for Nigeria, which holds vast mineral wealth yet continues to struggle with unregulated exploitation. With significant portions of its gold smuggled abroad, particularly to the UAE where it can acquire legal standing, Nigeria faces considerable economic repercussions. Reports indicate that illegal mining activities lead to billions in lost revenues annually, underscoring the urgent need for regulatory improvements and international cooperation to harness the country’s natural resources sustainably.
In summary, the Nigerian government’s acknowledgment of rampant illegal gold exports, as articulated by Minister Dele Alake, highlights a significant economic challenge exacerbated by smuggling activities primarily directed toward the UAE. The proposed partnership aimed at regulating the gold trade represents an optimistic step towards not only curtailing illegal operations but also fortifying the economic landscape of both countries involved, ensuring that Nigeria can leverage its mineral wealth for national development while fostering international trade relations.
Original Source: www.premiumtimesng.com
