Nigerian Minister Dele Alake has revealed that substantial gold extracted in Nigeria is smuggled into the UAE, resulting in annual losses of $9 billion from illegal mining. He proposed a partnership with the UAE to address this issue through regulatory frameworks. Both countries aim to enhance their economic relations and promote legitimate mineral trade.
Dele Alake, the Minister of Solid Minerals Development, disclosed that a considerable volume of gold mined in Nigeria is illicitly smuggled to the United Arab Emirates (UAE), leading to substantial revenue losses in taxes and royalties from unaccounted gold exports. The House of Representatives Committee on Solid Minerals estimates that Nigeria loses approximately $9 billion annually due to illegal mining activities. To address this issue, Mr. Alake suggested that Nigeria and the UAE form a partnership aimed at developing regulatory frameworks to combat illegal gold trading while enhancing economic gains for both nations. During a meeting with UAE Ambassador to Nigeria, Salem Al Shamsi, in his office in Abuja, Mr. Alake underscored the potential of an alliance with the UAE, which would reinforce the UAE’s status as a significant hub for mineral commerce. In a statement released by Segun Tomori, the Senior Special Assistant on Media for the Minister of Solid Minerals Development, Mr. Alake expressed an eagerness to collaborate with the UAE on the transfer of technology to elevate Nigeria’s mining industry. The minister remarked, “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. We propose working together to develop strategies to curb illegal gold trade and establish a regulatory framework that legitimizes this trade, allowing both countries to maximize their benefits.” Ambassador Al Shamsi reaffirmed the UAE’s commitment to enhancing relations with Nigeria, highlighting recent positive developments such as easing visa restrictions and the signing of a Memorandum of Understanding between UAE businesses and Nigeria’s Solid Minerals Development Fund (SMDF). He stated, “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 concluded their meeting by agreeing to establish a technical committee tasked with exploring collaborative approaches to combat illegal mineral trade and to promote legitimate commerce. Research by SwissAid indicates that the UAE is a primary destination for unreported gold, frequently gaining legal status despite its illicit origins. In 2022, approximately 66.5 percent of the UAE’s gold imports from Africa were undocumented. Despite Nigeria’s substantial gold reserves, particularly in Northern Nigeria and Osun State, vast amounts of revenue remain unaccounted for, leading to a meager contribution of 7.86 percent to the national GDP from the Mining and Quarrying sector as reported in the first quarter of 2024. Mr. Alake attributed the persistent challenge of illegal mining and exports in Nigeria largely to foreign illegal miners who also fund local banditry activities.
The smuggling of gold from Nigeria to the UAE has been a major issue contributing to significant economic losses for Nigeria, which is one of Africa’s gold-rich countries. The illegal exportation of gold not only deprives the government of vital revenue from taxes and regulation but also fuels issues such as banditry involved with foreign miners. This situation highlights the need for international cooperation and regulatory reforms to address illegal mining and promote fair trade practices in the mineral sector.
In conclusion, the illegal export of gold from Nigeria to the UAE represents a critical challenge that requires urgent and effective solutions. The proposed partnership between Nigeria and the UAE aims to curb this illicit trade, thereby enhancing economic benefits for both countries while promoting transparent practices in the mining sector. Such collaborative efforts are essential in addressing the broader implications of illegal mining, including its economic cost and contribution to local insecurity.
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