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  • Gold reserve industry bill passes second reading

    Wed June 05 2024


    The Senate on Wednesday passed for a second reading, a bill for an Act to make provision for Nigeria’s Gold Reserve Industry.  Sponsored by the lawmaker representing Kogi Central on the platform of the Peoples Democratic Party, Natasha Akpoti-Uduaghan, the bill is seeking a robust framework for the harnessing, exploitation and marketing of gold.

    Nigeria reportedly has about 600, 000 tonnes of gold reserves, worth about $45bn.  Leading the debate on the general principles of the bill on Wednesday, Natasha said, “The proposed legislation presents a significant opportunity to drive economic growth and diversification by creating a conducive environment for investment in the gold sector, that can attract both domestic and foreign investors, stimulate job creation, and boost revenue streams for the government.

    “It incorporates stringent regulations to minimize the ecological footprint of gold mining and processing activities.  “By adhering to international best practices in gold mining and trading, the Nigerian Gold Reserve Bill positions Nigeria as a reliable and responsible player in the global gold market which will enhance our competitiveness on the international stage and strengthen investor confidence in our gold industry.

    “Specifically, the bill seeks to establish the Nigeria Gold Authority that will be charged among other things, with the administration of Nigerian Mining Act with regards to our gold resources.”

    She noted that countries like Brazil, Russia, India, China, and South Africa, are shining examples of how strategic utilization of gold reserves can yield significant economic benefits.

    She said, “For the most part of 2023, the BRICS coalition has risen as a significant force in the global economy. The alliance made impressive strides in de-dollarization of the global economy. The BRICS is using gold to facilitate a shift in global demand away from the US Dollar.”

    The majority of the Senators who contributed to the debate on the bill supported it, describing it as legislation that would unlock the full value of Nigeria’s Gold Reserve and boost the nation’s non-oil revenue.

    Senator Solomon Olamilekan Adeola ( APC, Ogun West) in his contribution, said the bill when passed into law, would shore up the value of the naira which in his words, could even appreciate tremendously without foreign investment.