Economy
By Francisca Oluyole.
FROM 2016 to 2020, Nigeria recorded approximately 1.6 million grams. It gold reserve has been estimated to be over 1 million ounces in Osun where detailed exploration and reserve estimation has been done.
Gold in Nigeria was dated back to 1913. Major gold occurrences are found at various locations in the schist belt of the country; Zamfara, Kebbi, Kaduna, Niger, Osun, Kogi, Oyo, Cross River and Kwara states.
Gold mining in Nigeria is predominantly carried out by licensed small-scale miners and informal artisanal miners.
Due to the informal component of gold mining activities, the exploitation of the resources in the country was associated with a lot of illicit activities that gave rise to insecurity.
Other challenges associated with gold mining include loss of revenue due to the government, smuggling of gold products, environmental degradation as well as lack of transparency/ accountability in the gold value and supply chain.
To address all these challenges and for Nigeria to compete with other mining countries globally, Artisanal and Small Scale Mining Department (ASM) was created by the Ministry of Mines and Steel Development (MMSD).
The Presidential Artisanal Gold Mining Initiative (PAGMI) was also initiated with the primary objective to facilitate the formalization of artisanal and small scale gold miners in Nigeria.
PAGMI was also initiated to facilitate establishment of registered and recognised mineral buying centres to take off the gold produced by ASM, aggregate and refine it to London Bullion Market Association (LBMA) standard while CBN serves as the off taker.
MMSD had also issued two gold refining licenses to Kian Smith Limited and Dokia gold and precious metal company to establish, operate and produce gold that meets LBMA standard.
Federal government has also planned to construct gold smelting plant in Kogi for the North Central Zone and a gold souk in Kano from the North West zone.
Similarly, the National Gold Policy, when developed, would serve as an instrument and means by which Nigeria could secure maximum benefits from its gold mining value chains.
The Federal Government in collaboration with the United Nations Industrial Development Organisation (UNIDO)recently unveiled a policy document on gold mining in Nigeria.
This document policy was part of measures to grow revenue, address health challenges associated with gold mining and to attract investors to the mining industry.
UNIDO, some Federal Ministries such as Environment, Health and MMSD jointly unveiled the National Action Plan (NAP) for the Reduction and Eventual Elimination of Mercury Use in the Artisanal and Small-Scale Gold Mining sector in Nigeria.
Mr Jean Bakole, Regional Director and UNIDO Representative to ECOWAS, UNIDO Regional Hub Nigeria, said the policy document was an obligation for Nigeria, as a party under the Minamata Convention and would help drive investments in the mining sector.
He said this plan would provide Nigeria with current data and up-to-date situation analysis of its gold mining which would ultimately appeal to both local and foreign investors.
“More importantly, it has mapped out a way forward for gold mining and its associated mercury management in Nigeria,” he said.
Bakole said the NAP has developed national strategy on gold mining in Nigeria and its associated mercury use by facilitating formalization and access to finance, among others.
Dr Ochechukwu Ogah, Minister of State, MMSD says Nigeria is blessed with abundant gold enough to address the effect of devaluation of our currency.
Ogah said that Nigeria could use the gold produced to boost its foreign reserve as well.
He said no doubt the gold resources of Nigeria could contribute immensely to the economic diversification of the country but more contributions and efforts from stakeholders were expected.
“We encourage the realisation of the already licensed refineries and welcome more applications from prospective investors that want to set up gold refineries in Nigeria.”
He noted that revenue losses due to gold smuggling is humongous because over 95 per cent of local gold sources are from artisanal and small scale operators with difficulties in tracking their operations.
He said that local refining of gold and the proposed export guidelines may help to arrest the challenge.
The Federal government is also making effort to sign MoU with Dubai officials to track smugglers that are diverting Nigeria’s gold worth billions of Naira to Dubai gold souk.
The Minister said that the Federal government was working assiduously to resolve the issues of stigma of fraud, scam and smuggling against the Nigerian native gold sources by the LBMA to optimise earnings from the mineral commodity.
He added that native gold producers that produce in granules or bar form were not registered and the procedure for measuring gold content in all native forms have created uncertainties in the integrity of the local gold market.
Ogah said that Nigeria has put in place policy, legal/regulatory and institutional framework and attractive incentives for the development of its gold and other mineral resources.
The incentive put in place by MMSD for mining investors include exemption from customs and import duties for plant, machinery and equipment for mining operations and three to five years tax holiday as applicable; and tax concessions.
Others are Extension of infrastructure such as roads and electricity to mining sites as well as expatriate quota and resident permits in respect of expatriate personnel engaged by mining companies. (NAN).
– May 23, 2021 @ 14:32 GMT
Tags: Small Scale Mining Unveiling Nigeria’s gold potentials through Artisanal
