The Senate is finalising a new bill to strengthen the federal government’s control over Nigeria’s gold reserves. Nigeria has been said to possess roughly 600,000 tons of gold reserves, valued at around $45 billion. Once the Nigeria Gold Reserve Bill is passed, the Federal Government will own any land or property containing large amounts of gold reserves throughout the country. Sen. Natasha Akpoti-Uduaghan (PDP, Kogi) proposed a legislative proposal titled A Bill for an Act to Establish the Nigeria Gold Reserve Framework And Address Other Related Issues, 2024. This bill successfully advanced to a second reading on June 5th, 2024.
Also, the bill aims to create a metal reserve authority that will oversee the enforcement of the country’s Minerals and Mining Act to regulate the discovery and utilisation of the nation’s metal resources, among other objectives. Section II (10) of the proposed bill is currently being reviewed, and concerns state ownership of metal assets. All metals found on or under Nigerian land will be owned and controlled by the Government of the Federation on behalf of the people. The government will acquire any land where large amounts of metals are discovered, following the Land Use Act, starting from the start of this Bill. The Authority oversees and implements the regulations outlined in the Mining Act for this Bill.
Restrictions on gold mining to protect the environment and cultural sites.
Unless authorised by the Mining Act, anyone may not prospect for or extract precious metal resources across the country or control water flow for metal mining. However, certain areas have limits for metal mining activities. Metal mining titles granted by this act cannot be used to explore valuable Mineral resources, erect beacons, or occupy land designated for military purposes without the President’s approval. Additionally, no mining activities can occur within fifty meters of an oil Pipeline license area issued under the Oil Pipe-line Act.
Furthermore, if any urban area, rural community, marketplace, graveyard, ancient place of significance, religious site, or historical landmark is encroached upon by a railway or is located within a fifty-meter radius of one, or if it is within the vicinity of any official establishment, water reservoir, barrier, or thoroughfare. The act seeks to provide a range of benefits for operators in the metal mining industry, including a waiver on customs and import duties for plant, machinery, equipment, and accessories imported solely for precious metal mining activities.
Govt control of gold will boost the economy and protect the environment.
In addition, the country’s abundance of valuable mineral reserves presents many economic advantages. With the government taking control of these reserves, it can effectively manage and benefit from the profits generated through metal mining activities. This can lead to increased Revenue streams, job creation, and overall economic growth. By establishing a framework to regulate and protect these resources, the country can ensure sustainable utilisation of its precious metal reserves to benefit its citizens and future generations.
Moreover, the act also aims to protect the environment and prevent Illegal Mining activities that can harm natural ecosystems. Strict regulations outlined in the act will help minimise the environmental impact of mineral or metal mining operations, ensuring that the country’s natural resources are preserved for the long term. By implementing measures to curb unauthorised mining activities and enforce compliance with mining laws, the government can protect the environment and biodiversity while maximising the benefits of metal extraction for the country.
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Lastly, the government can leverage these assets for International Trade and Economic Development by owning and controlling the nation’s mineral or metal reserves. With a steady supply of metal resources, it can strengthen its position in the global market and attract foreign investments in the mining sector. By establishing a precious metal reserve authority to oversee the effective management of these resources, the government can ensure transparency, accountability, and sustainable utilisation of its precious metal reserves for the benefit of the country and its people.