Nigeria's Gold Sector Gains Momentum with Systematic Exploration

The global gold market has seen significant changes in recent years, with prices rising by an average of 19% annually since 2018. Central banks have been buying more gold, particularly after Russia's invasion of Ukraine led to its foreign reserves being frozen.

The increased demand for gold is due to its attractiveness as a store of value, unlike government bonds which are promises to repay money. Central bank purchases, geopolitical uncertainty, and concerns about government debt have become stronger influences on demand than interest rates and government bond yields.

Nigeria's gold sector has potential for growth, with extensive gold occurrences in the north-west and south-west schist belts. However, the country needs systematic exploration to determine how much of this geological potential can become economically viable production.

The Segilola Gold Mine in Osun State, operated by Thor Explorations, is a working example of large-scale commercial gold mining in Nigeria. The mine has produced over 200,000 ounces of gold since its inception and ongoing exploration continues to identify additional resources.