‘Smuggling stalls Nigeria’s exploit at global gemstone market’

5 months ago 9

In this interview with Ernest Nzor, the former African Chairman of Communities Artisanal and Small Scale Mining (CASM), Linus Adie, shares his insights on how Nigeria can learn from countries like Sri Lanka and South Africa to develop its gemstone industry, which is currently being threatened by smuggling. 

What is the current state of Nigeria’s gemstone industry and prospects for its future development?
There is significant demand for Nigerian gemstones in the global market. Unfortunately, many of these gemstones are smuggled out of the country.
 
There is a significant level of awareness and understanding of gemstone identification in Nigeria. We now have skilled gem cutters and polishers and gemstones are being cut and polished in Nigeria before export. However, there is still room for improvement. The Federal Government has recognised the potential of the gemstone industry and intends to develop it further. With the right individuals and expertise, the industry has tremendous potential. India, for example, has successfully harnessed its gemstone industry, contributing significantly to its GDP. We can learn from their example and replicate similar success in Nigeria.

What can Nigeria tap from the successes of countries like Sri Lanka and South Africa in terms of gemstone development?
There’s still a lot to be done. One crucial enabler is the establishment of a gemological center, which we currently lack. Such a center is essential for determining the quality of gemstones for customers and export. It would also provide critical research advantages, enabling us to better understand and develop our gemstone resources.
  
Currently, we may be limiting ourselves to a narrow range of gemstones. Gemstones are crystals that form gradually over time, so some may not be fully developed at our current geological age. For example, Nigeria has rubies, which are highly valued and even mentioned in the Bible, but our deposits may not be fully formed, which is why Nigeria is not renowned for its rubies. Further research could uncover more about our gemstone resources and potentially discover new varieties.
  
During my baseline study, I engaged a world-class consultant to conduct a business study on natural gemstones. He recognised the vast potential of Nigeria’s sapphire deposits. He visited the Mambilla area in Taraba State, collected samples and discovered that the sapphires contained a trace of copper, making them exceptionally valuable. This raises the question: are there more hidden gems in our country waiting to be discovered? A gemological center would be instrumental in uncovering such treasures and accurately identifying and authenticating gemstones.
  
In Sri Lanka, for example, skilled jewelry makers create exquisite pieces sought after worldwide. Despite being a developing country, Sri Lanka has a thriving jewelry industry. During my visit as Chairman of the African region, I was impressed by the quality of their products, which could easily be sold in prominent jewelry shops in Europe and the U.S., yet were produced locally in Sri Lanka.
The opportunities are vast, but unfortunately, our meeting was cut short when the minister arrived. Nonetheless, the potential of Nigeria’s gemstone industry is limitless, with proper training and infrastructure.

What are the challenges faced by Nigeria’s gemstone industry, and how are they being addressed?
The gemstone jewelry industry needs development. Unfortunately, there is no comprehensive gemstone policy in place yet. For example, Madagascar requires all raw gemstones to be processed within the country before export. In Nigeria, many individuals profit by exporting gemstones without adhering to such regulations. Some even smuggle gemstones by hiding them in their pockets, avoiding customs checks.
  
Proper monitoring is essential to control exports. If gemstones are made attractive and accessible within the country, people will be more likely to purchase them officially. The Ministry’s initiative to establish a gemstone market in Oyo State will encourage people to bring their gemstones for sale, just like in other countries. The gemstone industry urgently needs rapid development to realize its full potential.

Are there roles for the government in harnessing the gemstone potential in Nigeria?
Regulation and infrastructure development are crucial. Establishing a legal framework to govern the gemstone industry is essential, particularly in the context of global trade. International buyers demand transparency and want to know the origin of the gemstones. Traceability is essential to prevent illicit trade and ensure ethical sourcing, as seen in Liberia’s diamond trade. Therefore, regulating the gemstone industry and providing infrastructure to support it is vital.

Which gemstones are most in demand from Nigeria and what is driving this demand?
Tourmalines are abundant in Nigeria with significant deposits found in various states, including Rivers, Oyo, Ekiti, Cross River, and Nasarawa.

Which state has the highest production of gemstones in Nigeria?
There is a need for effective governance to accurately assess gemstone production. Often, we don’t even know what we have until it’s too late. For instance, a site might be occupied by thousands of people before we even realise the gemstones are there. In Niger State, after one week, there was a significant rush because people were searching for gemstones. In Ekiti State, we found tourmalines in two locations and started giving small-scale licenses in gemstone prospecting.

If Nigeria’s gemstones are being smuggled out without generating any benefits for the country, what is the potential for future growth?
If properly organised, the gemstone industry will increase exports and generate revenue for the government. This will also create employment opportunities in the sector. Developing this industry can stimulate economic growth and meet the demand for gemstones and jewelry, both domestically and internationally. Nigeria has a rich cultural heritage in jewelry-making, and we should leverage our resources to create unique and exquisite pieces that showcase our cultural identity.

  • Ernest Nzor

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