Nigeria is reportedly losing $9 billion yearly due to illegal gold smuggling into the UAE, according to Minister Dele Alake. He has proposed a partnership with the UAE to establish regulations that could improve economic benefits for both countries. This collaboration is seen as vital to address the ongoing challenges of illegal mining and export activities.
The Minister of Solid Minerals Development, Dele Alake, has highlighted that a significant portion of gold mined in Nigeria is illicitly smuggled into the United Arab Emirates (UAE). This illegal trade results in an estimated loss of $9 billion annually in taxes and royalties due to unreported gold exports. To address this issue, Alake has suggested a collaborative partnership with the UAE aimed at creating regulatory measures to combat illegal gold trafficking and boost economic benefits for both nations. During a meeting with UAE Ambassador to Nigeria, Salem Al Shamsi, in Abuja, Alake underscored the potential of such a partnership to enhance the UAE’s status as a central hub for mineral trade. Furthermore, he expressed interest in cooperating with the UAE on technology transfer to improve Nigeria’s mining sector. Alake noted, “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.” Ambassador Al Shamsi reiterated the UAE’s commitment to bolstering relations with Nigeria, pointing to recent advancements such as eased visa restrictions and a new Memorandum of Understanding with Nigeria’s Solid Minerals Development Fund. Both nations plan to set up a technical committee dedicated to finding ways to curtail illegal mineral commerce and promote legitimate trade.
The topic of illegal gold exports from Nigeria to the UAE highlights serious concerns regarding financial losses due to illicit mining activities. Nigeria, with its vast gold reserves, faces significant challenges from unregulated operators, many of whom are foreign nationals. The UAE has become a primary destination for smuggled gold, which poses a risk to Nigeria’s economy. The collaboration between Nigeria and the UAE aims not only to tackle these illegal practices but also to foster economic growth through formal trade channels.
In summary, Nigeria is losing substantial revenue due to the illegal smuggling of gold into the UAE, amounting to approximately $9 billion each year. The proposed partnership between Nigeria and the UAE aims to introduce regulation, reduce illegal gold trade, and enhance economic cooperation. This initiative could unlock the potential of Nigeria’s mining sector, traditionally underperforming in contributions to the national GDP. Both officials are committed to establishing systems that support legitimate commerce and curb unlawful practices.
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