Nigeria’s export economy saw a first-time trend in the last 15 months as the continent’s largest economy shipped gold worth N78.9 billion.
Nigeria is progressively taking advantage of the lucrative mining sector, which has been mostly underutilized since the peak of the crude oil boom. This is an important step in the country’s efforts to diversify its economy away from oil.
The National Bureau of Statistics (NBS) reported that in the first quarter of 2023, Nigeria exported non-monetary gold (including gold plated with platinum) in powder form to Switzerland for a value of N14.39 billion.
Further research revealed that Nigeria exported non-financial gold worth $61.6 billion in 2022, the biggest amount since the NBS began compiling data.
According to experts, the government’s choice to loosen rules and provide tax benefits for the first three years of operation is luring miners to the nation’s mining industry.
“Investments, mainly from foreign companies, are taking place in the sector right now. The reason is that the mining environment is getting more attention from the government and better too,” an investor who pleaded anonymity said.
Ayodeji Balogun, chief executive officer of AFEX, a Nigeria-based company operating a private agricultural commodity exchange, said he was planning to unveil products that will appeal to investors in the gold market.
“By the end of the year, we will be launching new product offerings such as derivatives and gold, that will allow both old and new investors to participate in the market,” Balogun said.
Nigeria is believed to have 300 million ounces worth of gold deposits, according to data. The nation has recently generated a modest amount of gold, nevertheless. Nigeria only produced 2,000 ounces of gold in 2021.