‘Extraction without development’, Urban Alert report faults Osun mining system

A new report by the civil society organisation Urban Alert has revealed the devastating environmental and economic impacts of gold mining in Osun State, describing the current regulatory framework as a system of “extraction without development.”

Published on Wednesday, April 29, 2026, the comprehensive document highlights a stark contrast between the region’s immense geological wealth and the severe pollution and financial exclusion burdening local host communities.

The report details an ongoing environmental emergency centred on the Osun River, which serves as a primary drinking water source for approximately 100,000 residents.

Building on its 2021 findings that proved the existence of mercury, lead, and cyanide in local waterways, Urban Alert’s latest water quality testing exposed catastrophic pollution levels.

The data revealed arsenic levels at 850 percent above World Health Organisation limits, mercury exceeding limits by over 2,000 percent, and lead contamination soaring between 1,000 and 2,000 percent above acceptable thresholds.

“Arsenic levels 850% above WHO limits, mercury over 2,000% above limits, and lead contamination 1,000-2,000% above limits”. The consequences are dire, as “scientists have projected five-year mortality impacts if remediation is not initiated”.

Despite scientific projections warning of severe mortality impacts over the next five years if remediation is not initiated, the report noted that the government had yet to mandate any cleanup programme as of March 2026.

This environmental degradation is juxtaposed against the massive wealth currently being extracted from the state.

According to the document, the Segilola Gold Project in Atakumosa East—Nigeria’s most active commercial gold mine—produced 85,057 ounces of gold in 2024 alone, generating an estimated $196 million in revenue.

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However, the report highlights that “geological richness does not automatically translate into community prosperity”.

“If Osun State adopted a community-first model like Ghana’s Newmont Ahafo Development Foundation (NADeF)—which mandates a contribution of $1 per ounce of gold sold plus 1% of annual net profit—the communities hosting the Segilola mine would receive a combined annual community fund of “approximately $1.34 million per year” to build hospitals, schools, and water treatment plants. Over the remaining life of the mine, this could result in an estimated “$13.4 million into a ring-fenced community endowment”.

Furthermore, the publication exposed significant regulatory loopholes within the Artisanal and Small-Scale Mining (ASM) sector, which it described as a licence to extract without accountability. The report observed that corporate clusters are acquiring multiple small-scale leases to supply centralized refineries.

“The failure to do so is not a resource failure. It is a governance failure. And governance failures are the only category of failure that policy can fix”

Because these sites are technically classified as small-scale operations, they carry no obligation to report production quantities, environmental status, or community benefit payments, creating an untracked pipeline of wealth that completely bypasses local residents.

Concluding that the state possesses more than enough mineral wealth to fund critical infrastructure in every extraction community, the authors declared that the ongoing crisis needs urgent policy reforms.