Is Nigeria Moving From Oil Into Gold?
By Dave Forest

When it comes to gold in northern Africa, the focus has always been on places like Ghana and Burkina Faso. With growing exploration activity pushing into neighboring countries like Cote d’Ivoire the last few years.

But news this week suggests that potential in this region may now be opening up across a wider area.

For one thing, the Democratic Republic of Congo announced this week that its 2015 gold production increased 30 percent as compared to 2014 — hitting 820,000 ounces for the year.

As the map below shows, this big jump in gold output comes a long way southeast of the traditional Ghana gold-producing region. With the DR Congo lying about 1,500 kilometers away.

Surging gold production in the DR Congo (lower right) comes a long way from northern Africa’s traditional producing areas in Ghana and Burkina Faso (top left)

And there may be an even bigger prize lurking here — right in between the two areas.

That’s in Nigeria. Where the government said this week it is hoping to jumpstart the exploration business across one of the largest nations in the region — measuring almost a million square kilometers in area.

Nigeria’s minister of solid mineral development, Kayode Fayemi, said Monday that the government has completed a comprehensive review of mineral licenses across the country. And will now look to bring new life to exploration areas — by stripping licenses from firms that have been inactive in advancing these projects.

Fayemi said that some licenses could be revoked as early as March 1. Potentially bringing prime ground out of the woodwork, and into the hands of new operators.

The move comes as Nigeria is looking to diversify its economy away from oil. Giving a serious push to reforms in the country — which is well-positioned geologically, but hasn’t seen a lot of comprehensive exploration work due to regulatory issues.

Watch for the results of the government’s review — which will reportedly be revealed next week.

Here’s to moving things along

http://oilprice.com/Finance/investing-and-trading-reports/Is-Nigeria-Moving-From-Oil-Into-Gold.html

The chances of extensive gold reserves in Nigeria are quite good. We are well positioned geologically.

I hope we do not waste the resources like we have done with oil.

This is a welcome developments, the minister had said they will concentrate on policy and exploration this year, hopefully by this time next year we will become a major player.

Government should also look into processing these minerals local, that way we will create wealth in host community and avoid the cry for resource control

The Gold industry is a very lucrative and marketable industry due to the electronics and fashion industry. I don't know if nigeria is ready for it though. Using the lead industry in Ebonyi as a case study, Nigeria has a lot to put in place before we will gain anything meaningful in this market and the first meaningful change should be change in mentality.

I have been following that ministry since the ministers were appointed, but I must confess Fayemi seems to be one of the quieter ministers, we are yet to really see his impact in that ministry, however I can't really blame him though because one needs to thread carefully in that ministry rather than rush and make mistakes . We really need to explore our precious minerals, I hope they work with the ministry of trade and industry, because we should not simply be exploring and then exporting them, the FG should work on the the entire value chain .

Believe me when i say this, the north where the gold deposits abound plenty will fight tooth and nail like rabid pack of dogs against the exploration of their area.

Obiagelli:
This is a welcome developments, the minister had said they will concentrate on policy and exploration this year, hopefully by this time next year we will become a major player.

Government should also look into processing these minerals local, that way we will create wealth in host community and avoid the cry for resource control

What is the local capacity? I pray we do not get all these foreign exploitative companies that provide no local benefit...

How does one enter the gold mining trade?

Obiagelli:
This is a welcome developments, the minister had said they will concentrate on policy and exploration this year, hopefully by this time next year we will become a major player.

Government should also look into processing these minerals local, that way we will create wealth in host community and avoid the cry for resource control

Very true Oby.

Exploration of solid mineral resources should be removed from the exclusive list first

Diversification is good for the economy.

kingbasil:
Believe me when i say this, the north where the gold deposits abound plenty will fight tooth and nail like rabid pack of dogs against the exploration of their area.

gold abounds too in osun state...and I won't preempt what the northeners will do......look in this country,you have to play smart politics ,not sentimental and hate politics played by some people

asha80:
Exploration of solid mineral resources should be removed from the exclusive list first

Oil producing states too will want theirs

babyfaceafrica:
gold abounds too in osun state...and I won't preempt what the northeners will do......look in this country,you have to play smart politics ,not sentimental and hate politics played by some people

Your stance and innuendos only work in societies which are predictably civilised... can it be said to be same in Nigeria

kingbasil:


Your stance and innuendos only work in societies which are predictably civilised... can it be said to be same in Nigeria

you mean we are uncivilised in this country?

babyfaceafrica:
you mean we are uncivilised in this country?

Do you need a soothsayer to tell you that

kingbasil:


Do you need a soothsayer to tell you that

well am not an uncivilised individual

babyfaceafrica:
well am not an uncivilised individual

You might be civilized but as a people, nigerians are not civilized and that was my earlier submission...

Nigeria shouldn't be looking at relying on any other commodities. Oil is good enough, lets look at agric and manufacturing;actual modernization, attracting FDI in form of transplants and investment into local talent ( see Ogun State and Innoson). Off the top of my head I'll say;
Oil and gold are both commodities , hence prone to volatile market movements. But oil rakes in way more than gold on the commodities markets. Its traded four times more than the next most traded commodity, copper. If we were a gold selling nation the crunch would have been felt since 2011, oil sustained itself for so long due to the lack of spare capacity that persisted, until shale boys ruined the show and consumer markets reacted with efficiency gains( demand destruction etc). Oil sales for countries like Naija could fall from 50-60 billion to 20 something in bad times. Gold would be say 2 to 3 billion( for a prolific producer) to 1 bill. or several hundred million. Now imagine such a blow from 2011 till now. Resource dependency is bad as it is. I'd rather leave it at oil.
Plus, Mining industry transparency is trash esp. in Africa. Look at uranium mining in Niger or DR congo's mineral trade. Its very opaque and corrupt, state coffers receive like 2 to 4 percent of trade value. Compared to our 55-60 % JV agreements and PSC contracts for oil. At least we're already experienced with one. Its harder to throw us around with respect to oil. But mining coupled with the corruption at home will be something else. All the while making innocent communities incur the social cost ( environmental, economic degradation of non-resource sectors).
Youth need to be kept busy and niche resource sectors don't really do that. Agriculture( although you could argue its a commodity) keeps hands busy,and provides an at least sustainable source of revenue. Something to complement the oil revenues that govt is sure to receive any given day. And if possible the icing on the cake, manufacturing; road to Industrialization.