Kian Smith and Trade Company Vice Chairman, Nere Teriba, talks about the mining industry in Nigeria and the role the company is facilitating to achieve growth in the gold sector.
The mining of minerals in Nigeria accounts for only 0.3% of its GDP, due to the influence of its vast oil resources.
The domestic mining industry is underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt or iron ore.
Rights to ownership of mineral resources is held by the Federal government of Nigeria, which grants titles to organizations to explore, mine, and sell mineral resources.
Gold deposits are found in Northern Nigeria, most prominently near Maru, Anka, Malele, Tsohon Birnin Gwari-Kwaga, Gurmana, Bin Yauri, Okolom-Dogondaji, and Iperindo in Osun state it is not very dominant in the country.
Gold production began in 1913 and peaked in the 1930s. During the Second World War, production declined. Mines were abandoned by colonial companies, and production never recovered.
The Nigerian Mining Corporation (NMC) was formed in the early 1980s to explore for golds.
Lack of funds, and the lure of easier profits from oil production led to its failure.
There is no large scale gold mining operation in Nigeria today, though there is small-scale mining.