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
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
