Nigeria’s Gold Smuggling Crisis: A Call for UAE Partnership to Curb Illegal Trade
Nigeria’s Solid Minerals Minister, Dele Alake, reported that a significant quantity of Nigerian gold is smuggled into the UAE, resulting in a loss of $9 billion annually in tax revenue from illegal mining. He proposes a partnership with the UAE to establish regulatory frameworks to fight this issue and promote legitimate trade. Ambassador Al Shamsi reiterated the UAE’s commitment to enhancing ties with Nigeria, citing recent visa policy changes as a step forward.
The Minister of Solid Minerals Development, Dele Alake, has disclosed that a substantial volume of gold mined in Nigeria is illegally trafficked to the United Arab Emirates (UAE). This illicit activity leads to considerable loss of tax and royalty revenue resulting from unreported gold exports. As highlighted by a committee in the Nigerian House of Representatives, illegal mining activities result in an estimated loss of $9 billion annually for the nation. To address this pressing issue, Minister Alake has proposed a collaborative effort between Nigeria and the UAE to create regulatory frameworks aimed at curbing the illegal gold trade while enhancing economic profitability for both nations. During a meeting with the UAE Ambassador to Nigeria, Salem Al Shamsi, in Abuja, Mr. Alake underscored the potential partnership between the two nations to bolster the UAE’s status as a significant mineral trade hub. He expressed interest in collaborating with the UAE on technological advancements to enhance Nigeria’s mining industry. Alake noted, “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 legitimises this trade, allowing both countries to maximise their benefits.” In response, Ambassador Al Shamsi reaffirmed the UAE’s commitment to strengthening ties with Nigeria. He referenced the recent easing of visa restrictions and a crucial Memorandum of Understanding (MOU) between UAE firms and Nigeria’s Solid Minerals Development Fund (SMDF) as demonstrative of this commitment. He remarked, “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 parties have agreed to form a technical committee tasked with devising strategies to combat illegal mineral trade while promoting legitimate economic engagement. A report published by SwissAid has indicated that the UAE is a primary destination for undeclared gold, indicating that a significant percentage of its gold imports from Africa stems from smuggling. Notably, approximately 66.5% of the UAE’s gold imports from Africa in 2022 were illicitly acquired, totaling around 2,569 tonnes valued at $115.3 billion between 2012 and 2022. Alarmingly, a considerable share of Nigeria’s gold income remains unaccounted due to illegal practices, despite its vast reserves of 21.37 tonnes spread across regions including Northern Nigeria and Osun State. Although the mining sector holds substantial potential for national economic growth, its actual contribution remains minimal. The National Bureau of Statistics reported that the Mining & Quarrying sector contributed 7.86% to Nigeria’s overall GDP in the first quarter of 2024. Mr. Alake pointed out that foreign illegal miners are at the core of Nigeria’s illicit mining and export dilemma, further exacerbating conflicts by funding banditry.
The issue of illegal gold smuggling from Nigeria to the UAE has significant economic implications, resulting in the loss of vital revenue that could be generated from legitimate mining activities. With Nigeria’s mining sector underutilized, the government is keen on forming partnerships that can lead to better regulation of gold exports and ultimately stimulate the economy. The UAE’s status as a top import destination for undisclosed African gold highlights the need for stronger regulatory measures to combat this trade. Understanding the dynamics of this issue is crucial for crafting effective solutions and fostering growth in Nigeria’s mining sector.
In summary, the smuggling of gold from Nigeria to the UAE poses a serious threat to the country’s economic potential, resulting in billions lost due to illegal mining practices. Minister Dele Alake’s proposal for a partnership with the UAE signifies a proactive approach to tackle the challenge through regulatory frameworks and technological advancements. Strengthening bilateral relations may not only curb illegal activities but also enhance the financial viability of Nigeria’s mining sector, fostering growth and stability.
Original Source: www.premiumtimesng.com
