The Federal Government had renewed its determination to expand sources of non-oil revenue, to free Nigeria from over-reliance on income from embattled crude oil, by creating enabling environment for investment in mineral resources and allied products in commercial quantities.
Despite over 40 available mineral resources in Nigeria, the sector is currently contributing a paltry 0.5 percent to the nation’s GDP, because the business is largely informal, uncompetitive and dominated by artisans who have to go through middlemen. However, government has projected five percent contribution of the sector to GDP by 2023.
Speaking at the virtual launch of Nigeria’s premier Gold company, Dukia Gold and Precious Metal Refining Company Limited’s Raw Materials Purchasing Programme, the Vice President of Nigeria and Head of the country’s Economic Management Team, Yemi Osinbajo, explained that in line with Economic Recovery and Growth Plan (ERGP), the Federal Government was ready to leverage more support for development of investment in solid minerals as a source of foreign exchange earnings for the Nigeria.
Osinbajo who commissioned the Raw Materials Purchasing Programme Online during a well-participated Zoom’s meeting, noted that it was a landmark opportunity for Nigeria to revive the mining sector by standardizing the business and making it easy for the operators to create jobs and contribute to Nigeria’s Gross Domestic Product (GDP).
According to him, active investment in business of gold and allied products would create huge job opportunities for all professionals in the value chains. He commended the promoters of Dukia Gold and Precious Metal Refining Company for the great initiative while he also applauded the project’s financier, Heritage Bank Plc, for supporting the Programme.
“The Programme is a landmark opportunity for Nigeria and Africa. It will create employment for the entire operators in the value chain at post COVID-19. We shall through our policies encourage emergence of small artisans in the mining business to boost job opportunities and foreign exchange earnings for Nigeria”, said Osinbajo.
Responding to him, the Managing Director and Chief Executive Officer, Dukia Gold and Precious Metals Refining Company, Bose Owolabi thanked the Federal Government for its support and pledged to ensure that the Programme becomes operational immediately. Mrs Owolabi, explained that the the company’s initiative was predicated on the need for the private sector operators to support the government in fulfilling its objective of establishing gold refineries in Nigeria.
“The objectives of Dukia Gold and Precious Metals Refining Company Limited aim at fulfilling the Federal Government of Nigeria’s objective of ensuring that a Gold Refinery is established in Nigeria as part of the Solid Minerals Road Map beyond Oil Economic Diversification Programme as contained in Economic Recovery and Growth Plan (ERGP) Policy.
“Gold is being financed by a blend of Equity and Loans from Financial Institutions led by Heritage Bank Plc, supported by Messrs PAC Capital as Financial Advisers and Fund Arrangers and, in due course, by the Afrexim Bank.”, Owolabi said.
Corroborating her, the Managing Director and Chief Executive Officer, Heritage Bank, Ifie Sekibo, noted that there had not been formal platform for artisans in Nigeria’s mining sector and the Raw Materials Purchasing Programme would enable both artisans, aggregators and others in the value chain to operate optimally.
One of the speakers, and Managing Director and Chief Executive Officer, Lagos Commodity and Futures Exchange, Akin Akeredolu-Ale assured the promoters of Dukia Gold of The Exchange’s willingness and readiness to support the company whenever it applies for listing.
The top government officials that participated at the virtual meeting were Ekiti State Governor, Kayode Fayemi, Minister of Mines and Steel Development, Olamilekan Adegbite, Minister of State for Mines and Steel Development, Uchechukwu Ogah and Fatima Shinkafi, Executive Head, Solid Minerals Development Fund (SMDF).
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