Gold boom yields windfall for Segilola owner – but little taxes for Nigeria

A surge in gold production at Segilola, Nigeria’s first large-scale commercial gold mine, delivered a windfall for its owner, Thor Explorations Ltd., but translated into limited direct tax revenue for the Nigerian government, the company’s 2025 financials show.

Thor reported revenue of $325.5 million in 2025, up sharply from $193.1 million a year earlier, driven almost entirely by gold sales from its Nigerian operations, as strong gold prices and steady production boosted earnings. Profit before tax reached about $196.2 million, underscoring the scale of value being extracted from Nigeria’s emerging gold sector.

Despite the windfall, Thor paid no corporate income tax in Nigeria, benefiting from a Pioneer Status Incentive (PSI) that grants a tax holiday on qualifying projects. Instead, government earnings came largely from royalties and education tax.

Royalty payments totalled $2.92 million, less than 1% of revenue, while education tax stood at $6.09 million. Even combined, the figures highlight a wide gap between corporate earnings and immediate public revenue.

The company does pay a pioneer service charge under the PSI regime, but this remains significantly lower than standard corporate taxation. In 2025, that charge amounted to $3 million.

“Generous Incentives”

Thor’s performance reflects a broader policy trade-off. Nigeria has offered generous incentives to attract mining investment into a sector long overshadowed by oil. But while such policies have helped bring projects like Segilola to life, they also defer the government’s fiscal gains during early production years.

President and CEO Segun Lawson said the company had “fully capitalised on the high gold price environment,” delivering about 92,000 ounces of production and ending the year with $137.75 million in cash.

The strong cash position has translated into shareholder returns. The company paid about $18 million in dividends in 2025 and declared additional payouts in early 2026, bringing total returns to roughly $32 million.

“We are committed to maintaining this policy,” Lawson said, adding that Thor aims to increase dividends depending on cash flow.

Beyond Nigeria, Thor is expanding across West Africa, with plans to develop the Douta project in Senegal and grow its exploration footprint in Côte d’Ivoire.

At the same time, the company is positioning itself as an ESG-aligned operator. It reported total greenhouse gas emissions of 44,073 tonnes of CO₂ equivalent in 2025, a 6% drop from the previous year, alongside reductions in waste and improved water recycling.

Thor said it employed 2,026 people at Segilola—99% of them Nigerian—and spent 86% of its procurement budget locally. It also delivered 30 community projects, including healthcare initiatives under its “Seguncare” programme.

Thor Explorations Ltd. is publicly listed on AIM (London Stock Exchange’s growth market) and TSX Venture Exchange in Canada.