Nigeria's mineral potential spanning gold, limestone and lithium could reduce the country's dependence on oil and create manufacturing opportunities, but converting these deposits into economically viable operations remains a long and demanding process. The challenge extends beyond extraction to establishing the infrastructure, regulatory clarity, technical expertise and community trust needed to sustain commercial mining ventures.
Segilola Resources Operating Limited marked a turning point by pouring its first gold in 2021 and achieving its first full year of commercial production in 2022, establishing Nigeria's first commercial large-scale gold mine. The company faced significant hurdles during construction, including health risks and supply chain disruptions from the COVID-19 pandemic, while also building local technical capacity to operate a modern mine. Since commencing production, Segilola produced 91,910 ounces of gold in 2025, with its parent company Thor Explorations Ltd repaying its debt facility with the Africa Finance Corporation and paying quarterly dividends to investors. With 99 per cent of its workforce Nigerian, the operation has demonstrated how developing local talent can support commercial mining.
Replicating Segilola's success requires stronger coordination between government institutions and the industry. Mining operators must engage with multiple institutions across a project's lifetime, from land access and environmental approvals to taxation and community relations. Overlapping requirements, unclear procedures and unpredictable timelines complicate project development and make investment decisions harder. Investors in capital-intensive mining projects, which may take years to generate revenue, require greater certainty to assess risks and plan with confidence. Access to appropriate financing is also critical, as commercial mines require substantial upfront spending before generating returns, making credible project information and robust development plans essential to securing capital.
Economic benefits must extend beyond extraction to encompass opportunities for Nigerian suppliers, service providers, processors and manufacturers. Building technical expertise, improving access to specialised equipment and strengthening local supply chains can help more businesses participate in mining and retain greater economic value within the country. Equally important is building lasting relationships with host communities through meaningful engagement, local employment, worker safety and responsible environmental stewardship.
Platforms such as Nigeria Mining Week, held from October 12 to 14, 2026 at the Abuja Continental Hotel, bring together government, operators, investors, service providers and communities to share experiences and explore practical solutions. However, sustained progress requires engagement beyond annual gatherings, with a standing forum to track agreed actions and address emerging constraints. Progress will ultimately depend on clear, predictable regulation; investment in technical capacity and infrastructure; stronger local supply chains; and relationships with host communities built on trust and shared value.
For savers, borrowers, business owners and investors in Nigeria, a stronger mining sector could diversify the economy, create employment opportunities and provide alternative investment avenues beyond oil and traditional sectors.