Economy
Can Gold Mining Offer Nigeria an Unexpected Lifeline?
By Lukman Otunuga
Can Gold stand toe-to-toe with Black Gold for Nigeria’s economy?
Geopolitical tensions have triggered explosive levels of market volatility and uncertainty. These unfavourable market conditions continue to accelerate the flight to safety with gold by roughly 6% since the start of 2022.
Amid the negative themes bombarding global sentiment, gold remains a bright spot and high upside thanks to its status as an inflation hedge.
The precious metal was trading around $1935 last week and is expected to remain volatile over the next few days amid key economic reports, the Ukraine-Russia conflict, and China lockdowns among other factors.
Gold buoyed by fundamental factors
Several factors are supporting gold prices.
Safe-haven buying triggered by fears over the Ukraine-Russia conflict has boosted the metal’s spot and futures prices. In recent events, Russian and Ukrainian negotiators are set to resume face-to-face talks in Turkey this week.
While signs of both sides finding a middle ground could boost risk sentiment, further delays or disagreements could rattle financial markets. Soaring Covid-19 cases in China have also added to the risk-off mood and overall uncertainty. With commodity prices soaring on supply-side fears, concerns over stagflation and its consequences on the global economy continue to weigh on investor confidence.
On the flipside, expectations over the Federal Reserve adopting an aggressive approach toward interest rates could hit zero yielding gold. An appreciating dollar and rising bond yields may compound the precious metal’s woes, creating obstacles for bulls down the road.
Nigeria’s Gold reserve….
Back in 2020, Nigeria refined its own reserve gold bar and paid N268 million for the 12.5kg bar to start a central bank stock. When considering the previously mentioned factors stimulating the appetite for gold, this move was a welcome development for Nigeria as it diversified away from oil reliance.
Indeed, if cultivated well, gold mining and trading possessed a frightening potential to generate more revenue than crude oil for Nigeria.
Fast forward to today, Nigeria still remains in an ongoing quest to tap the potential of the gold mining sector. Since the massive hype in 2020 which created awareness on access to the markets, it’s been a tale of uncertainty and negativity. Illegal mining activities have become a major plague in the sector, with solid minerals being smuggled out of the country – resulting in a loss of potential government revenues.
The numbers do not lie…
The underlying math’s in Nigeria’s Gold market show strong potential.
Nigeria’s Gold reserve is estimated at 200 million metric tonnes, according to the Nigeria Mining Growth Roadmap. Meanwhile, Trading Economics places Nigeria as the sixth largest country with Gold deposits in Africa, with an average of 21.37 tonnes from 2000 to 2020, reaching an all-time high of 21.46 tonnes during the first half of 2021. The nation’s current estimated gold reserves are over 200 million ounces, most of which have not been exploited.
Back in 2020, the newly-regulated gold mining sector was expected to create 250,000 new jobs and provide the Federal Government with an additional estimated annual revenue of $150 million in taxes, $25 million in royalties, and $500 million in foreign exchange reserves. It remains to be seen whether these predictions will match reality.
Should the developments in the gold mining sector improve, this could help boost investor sentiment against external risks in the form of geopolitical tensions and oil price volatility among many other factors.
In a perfect world, a well-managed diversification into precious metals mining and building a national gold stock could support the CBN’s foreign exchange reserves in the longer term. But we do not live in a perfect world. Negative news around illegal smuggling and violence around the sector have hit the sector’s reputation. However, there is still hope if government regulations instil long-term trust and credibility -especially when factoring in the sector’s strong potential.
Lukman Otunuga is the Senior Research Analyst at FXTM
By Adedapo Adesanya
Seplat Energy Plc has completed the conversion of its operated onshore oil and gas assets to the fiscal regime of Nigeria’s Petroleum Industry Act (PIA), marking a major regulatory milestone for the company.
In a statement issued on Tuesday, the dual-listed Nigerian energy firm said its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, finalised the conversion from the former Petroleum Profits Tax framework to the PIA regime following the fulfilment of all technical and regulatory requirements.
The PIA, signed into law in August 2021, was introduced to modernise governance, improve transparency, attract investment, and make Nigeria’s petroleum fiscal framework more competitive globally.
The conversion covers assets previously held under Oil Mining Leases (OMLs) 4, 38, 41 and 53. During the first nine months of 2025, these assets recorded an average working interest production of 42,591 barrels of oil equivalent per day, accounting for approximately 31 per cent of Seplat’s total output.
According to the company listed on both the Nigerian Exchange Limited and the London Stock Exchange, the PIA framework is expected to support increased investment, production growth and improved operational efficiency. The anticipated impact of the conversion had already been factored into Seplat’s medium-term guidance presented at its Capital Markets Day in September 2025.
Seplat noted that it executed Conversion Contracts with its joint venture partners in February 2023 and has since worked closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to complete the process. New Petroleum Mining Lease (PML) and Petroleum Prospecting Licence (PPL) numbers have now been issued, with PIA-based operations expected to commence from January 1, 2026, subject to regulatory guidance.
Commenting on the development, Chief Executive Officer Roger Brown said the successful conversion reflects the company’s commitment to regulatory compliance and value creation.
“Conversion to the PIA fiscal regime has been an important focus for Seplat, and we are delighted to have delivered, alongside our respective joint venture partners, the conversion of our onshore operated assets within the timeline outlined at our recent Capital Markets Day,” Mr Brown said.
He added that the transition positions the company for improved profitability and stronger cash flow margins in its onshore business.
Seplat also disclosed that it is continuing efforts to convert its offshore assets to the PIA regime, with a target completion date of 2027.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Monday, December 22 as investors showed hunger for unlisted stocks.
Trading data showed that the volume of securities traded at the session surged by 532.9 per cent to 12.6 million units from the previous 1.9 million units, as the value of transactions jumped by 64.3 per cent to N713.6 million from N80.3 million, though the number of deals moderated by 13.5 per cent to 32 deals from the 37 deals recorded in the previous trading session.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, followed by Okitipupa Plc with 178.9 million units worth N9.5 billion, and MRS Oil Plc with 36.1 million units transacted for N4.9 billion.
InfraCredit Plc also finished the trading day as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with the sale of 1.2 billion units for N420.7 million, and Impresit Bakolori Plc with a turnover of 537.0 million units valued at N524.9 million.
The unlisted securities market printed a price loser, FrieslandCampina Wamco Nigeria Plc, which dropped 20 Kobo to sell at N53.80 per share versus last Friday’s closing price of N54.00 per share.
However, the loss was offset by the trio of NASD Plc, Golden Capital Plc, and UBN Property Plc.
NASD Plc gained N5.00 to close at N60.00 per unit versus N55.00 per unit, Golden Capital Plc appreciated by 77 Kobo to N8.45 per share from N7.68 per share, and UBN Property Plc improved by 22 Kobo to N2.43 per unit from N2.21 per unit.
As a result, the market capitalisation increased by N3.38 billion to N2.125 billion from N2.121 trillion, and the NASD Unlisted Security Index (NSI) grew by 5.65 per cent to 3,552.06 points from 3,546.41 points.
By Dipo Olowookere
The bulls remained on the floor of the Nigerian Exchange (NGX) Limited on Monday, rallying by 0.26 per cent at the close of transactions.
This was buoyed by the gains recorded by 34 equities on Nigeria’s stock exchange, which outweighed the losses posted by 20 equities, indicating a positive market breadth index and strong investor sentiment.
Aluminium Extrusion gained 9.72 per cent to quote at N13.55, International Energy Insurance improved by 9.69 per cent to N2.49, Mecure Industries rose by 9.64 per cent to N60.30, Royal Exchange expanded by 9.60 per cent to N1.94, and Austin Laz grew by 9.50 per cent to N2.65.
On the flip side, Custodian Investment depleted by 10.00 per cent to N35.10, ABC Transport crashed by 10.00 per cent to N3.15, Prestige Assurance weakened by 7.41 per cent to N1.50, and Guinea Insurance slipped by 7.38 per cent to N1.13.
During the session, investors traded 451.5 million shares worth N13.0 billion in 33,327 deals compared with the 1.5 billion shares valued at N21.8 billion transacted in 25,667 deals in the preceding session, showing spike in the number of deals by 29.84 per cent, and a decline in the trading volume and value by 69.90 per cent and 40.37 per cent apiece.
The first trading session of the Christmas week had Tantalizers as the most active with 50.2 million units sold for N127.5 million, First Holdco transacted 32.6 million units worth N1.5 billion, Access Holdings exchanged 27.3 million units valued at N562.3 million, Custodian Investment traded 22.1 million units for N857.8 million, and Chams transacted 21.3 million units valued at N71.1 million.
When the closing gong was struck at 2:30 pm to end trading activities, the All-Share Index (ASI) was up by 401.69 points to 152,459.07 points from 152,057.38 points and the market capitalisation went up by N256 billion to N97.193 trillion from N96.937 trillion.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn