Nigeria Risks Losing Mining Wealth as Gemstones Leave Country Unprocessed
Nigeria risks losing significant economic opportunities by exporting gemstones without processing them locally, mining industry stakeholders have warned, calling for greater investment in domestic production, improved security and affordable financing. Speaking at the 11th Nigeria Mining Week in Abuja, participants said developing local processing facilities could create jobs, strengthen indigenous businesses and enable mining communities to earn more from the country’s mineral resources.
Segun Okoh, Country Manager of Adelia, proposed establishing gemstone processing clusters where mining, grading, cutting and jewellery production could take place within an integrated system. He said the approach, which has been adopted in Tanzania, could reduce operational costs and create employment opportunities. Tope Adebanjo, Chief Executive Officer of Laurel School of Mines, also identified gemstone treatment, evaluation and jewellery making as areas requiring greater investment, urging the government to support entrepreneurs capable of transforming raw minerals into finished products.
Beyond processing, stakeholders identified insecurity, expensive loans and inadequate technology as major obstacles to investment. Kieran Harrington, Exploration Manager at JFR Gold, said security concerns continued to discourage international investors despite Nigeria’s gold potential, while Michael Adekoya of Mecano International Limited called for more affordable financing to help miners purchase equipment. Other participants advocated stronger environmental compliance, improved access to international markets, technical training and collaboration between mining companies, government and host communities to curb illegal mining.
The challenges are also affecting mineral development at the state level. Matai David Anji, Permanent Secretary of the Taraba State Bureau for Solid Minerals, said the state had approximately 16 mining licences covering resources including gold, lithium, sapphire, tourmaline and copper ore, but insecurity and other difficulties had led to the suspension of mining activities. He said the state was seeking investment partnerships while working to formalise artisanal mining. Stakeholders maintained that Nigeria must prioritise local value addition, strengthen security and improve access to capital if it hopes to turn its mineral deposits into sustainable economic growth.
