Dele Alake, Nigeria’s Minister of Solid Minerals Development, revealed that significant gold mined in Nigeria is smuggled into the UAE, resulting in annual losses of $9 billion due to illegal mining. He proposed a partnership with the UAE to create regulatory frameworks to combat this issue and enhance economic cooperation. The UAE Ambassador supported the initiative, aiming to strengthen bilateral ties and address the illegal mineral trade.
Dele Alake, the Minister of Solid Minerals Development, disclosed that a substantial quantity of gold mined in Nigeria is illegally exported to the United Arab Emirates (UAE). This illicit activity leads to a significant loss of critical revenue from uncollected taxes and royalties tied to undisclosed gold exports. The House of Representatives Committee on Solid Minerals asserts that Nigeria loses approximately $9 billion annually due to illegal mining operations. To mitigate these issues, Minister Alake has suggested a collaboration between Nigeria and the UAE to create regulatory frameworks aimed at curbing the illegal gold trade, thereby enhancing the economic benefits for both nations. During an official meeting with the UAE Ambassador to Nigeria, Salem Al Shamsi, in Abuja, Mr. Alake stated that a formal partnership between the two countries would further consolidate the UAE’s role as a key mineral trade hub. The Minister expressed a desire to facilitate technology transfer in order to bolster Nigeria’s mining sector. He 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 legitimises this trade, allowing both countries to maximise their benefits.” In reply, Ambassador Al Shamsi reaffirmed the UAE’s commitment to strengthening bilateral relations with Nigeria. He highlighted advancements such as the recent easing of visa restrictions and a pivotal Memorandum of Understanding (MOU) 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.” To facilitate this cooperation, both nations agreed to form a technical committee tasked with exploring collaboration strategies to combat the illegal mineral trade while promoting legitimate commerce.
The illegal gold trade in Nigeria has become a significant issue, with vast amounts of gold smuggled to international destinations, particularly the United Arab Emirates. This not only deprives Nigeria of potential revenue but also complicates its mining industry’s growth. The government views a partnership with the UAE as an essential step in addressing these challenges and enhancing the overall mining sector within Nigeria.
The Nigerian government is seeking to address the rampant illegal gold trade through a proposed partnership with the UAE. By establishing regulatory frameworks and enhancing cooperation, both nations aim to maximize the benefits derived from gold exports, ensuring that valuable revenues do not fall into illegal channels. This partnership represents a strategic effort to rejuvenate Nigeria’s mining sector and strengthen financial returns for the country.
Original Source: www.premiumtimesng.com
