Nigeria’s new gold development initiative has the potentials to ensure the economy remains strong and resilient to withstand the exogenous shocks noticed globally.
Central Bank of Nigeria Governor, CBN, Godwin Emefiele, Speaking with State House Correspondents in Abuja said the initiative is aimed at diversifying the revenue base of the Nigerian economy.
This is as Federal Government could rake in additional estimated revenue annual average of $150 Million in taxes, $25 Million in royalties, and $500 Million accretion to foreign reserves from the integration of artisan gold mining activities
‘’We will say that today this has been actualised in the sense that other than receiving dollar revenue from proceeds of sale of crude oil, we have today received into our reserves through the purchase of this 12.5kg purified gold bar into our reserves, we have today received gold into our reserves”
Following the successful launch of the program , Central Bank will n9w purchasing gold that has been mined, processed and refined under the Presidential Artisanal Gold Mining Development Initiative PAGMDI for use as part of Nigeria’s external reserves.
“PAGMI will result in the creation of over 500,000 new mining and formalized jobs, leading to poverty alleviation for more than 1 million households.
The artisanal gold miners , according to Emefiele, earn more from higher productivity, achieve better recovery rates through mechanization of operations, and better access to reliable geological information.
“Like you all know ,gold is valued in the international market in dollars so what does that mean ? This gold is valued at dollar sum that will go into our reserves and what does that also mean that for those who feel that the only way they can analyse Nigeria is to say what is the price of crude , is the price of crude high or is the price of crude low ,they will now begin to see that at this time when the price of crude is low , the price of gold is rising.
The CBN Governor assured Nigeria’s friends both locally and internationally to that the “Nigerian government supported by the monetary authorities is doing everything possible to diversify the base of the Nigerian economy and in the coming weeks and months, adding that “Nigerians and the world will see more that is going to be done in improving the output from our agricultural sector , improving productivity from the manufacturing sector , doing everything to make it easy for goods to move from farms to market in Nigeria.
”All this are being done to ensure that the Nigerian economy remains resilient to withstand any shock that may come our ways
The gold initiative is seen as a milestone in the country’s commitment to diversifying Nigeria’s economy and foreign reserves, coming after 24 months of intense efforts between the Solid Minerals Development Fund, Kebbi and Osun States Government, Ministry of Mines and Steel Development, and the Ministry of Finance, Budget, and National Planning under a Steering Committee led by the Chief of Staff to the President, Ibrahim Gambari.
The initiative is also expected to boost national identity management through the biometric registration of over 20, 000 artisanal miners nationwide.
The PAGMI will also ensure that responsible sourcing standards, as outlined in the OECD Due Diligence Guidance, are adhered to, and the gold bars delivered to the Central Bank of Nigeria are Responsibly-Sourced, and LBMA Certified.
Health, Safety and Environmental Benefits: From 2010 to 2016, there were more than 7,000 incidences of lead poisoning, resulting in 700 deaths, related to gold mining activities in Zamfara and Kebbi alone.
The recorded lead levels, at 23,000 ppm, were more than 55x the maximum acceptable level for environmental lead levels (400 ppm).
“Effective implementation of PAGMI will help to control the use of lead, mercury, and cyanides. PAGMI will also improve the working condition of artisanal miners, thereby reducing the number of in-pit deaths that are seen on an annual basis”
