The Nigerian government has released new guidelines for mining gold in Zamfara State, ending a five-year restriction on exploration activities due to security concerns. 

The move comes as the price of gold is going up globally with the price of the precious commodity reaching over $3,000 per ounce, presenting Nigeria an opportunity to extract its mineral deposits.

Rising insecurity, particularly from bandits in the region, pushed the federal government in 2019 to stop mining in Zamfara. The move was to curb illegal mining and safeguard the lives of miners.

 However, the ban also left a vacuum that helped illegal mining thrive, depriving Nigeria of significant revenue from its vast gold reserves.

With the security in Zamfara state improving, the federal government has introduced new rules to regulate mining and promote transparency. The renewed focus on gold mining is part of a move to close down illegal business while attracting investment into the industry, says Minister of Solid Minerals Development Dr. Dele Alake. 

The aim is to legalize gold mining activities, which have been plagued for years by illegal business.

The government's new policy includes more intense supervision and the institution of more established standards of operation for miners, with the ultimate goal being an accountable and transparent mining field. Through ensuring that gold mining is conducted lawfully and sustainably, the government hopes to reap the maximum from gold revenue, which has become a major commodity in the global market.

The timing for this project is particularly relevant, considering that the price of gold has risen quite a bit over the past several months. The price of gold surpassed $3,000 per ounce as of March 2025, driven by strong demand by investment funds and central banks, with analysts guessing that prices could still go up in the subsequent months. Gold will hit $3,200 an ounce by mid-2025, predict analysts, pointing to the potential economic windfall for gold-reserve-abundant countries such as Nigeria.

Zamfara, located in northwestern Nigeria, is one of Nigeria's key gold-producing states with enormous untapped mineral potential. Resumption of mining in the state will boost the local economy, create jobs, and attract foreign investment. It can also stabilize the national economy, which has been hit by price fluctuations in oil and other external shocks.

Apart from gold, Zamfara also holds lithium, copper, and other minerals, all of which play a crucial role in emerging technologies such as electric batteries and alternate energy systems. With its current focus on the extraction of minerals, Nigeria has the ability to diversify the economy and not rely so heavily on the exportation of oil, whose prices have been on the move.

Since the government is also modernizing the mining sector further and implementing measures of transparency, it is hoped that this new age of Zamfara's mining enterprise will not only enhance Nigeria's income from gold but also serve as a model to be emulated by other nations in attaining safe and profitable means of mining.

With increasing gold prices and a more secure mining environment, Nigeria has a rare opportunity to maximize its mineral potential and become an important player in the global gold market.