In no distant time one major source of revenue apart from crude oil sale will be gold. This will be the result of a proposed legislation in the Senate, which seeks to increase the country’s foreign reserve assets to 30% from the present four percent earlier celebrated by the ministry of solid minerals.
The Senate on Wednesday revealed the plan, which will be a leap towards the plan to diversify the economy. The bill when it becomes law will form a shift away from mono economy on the plank of crude oil, and take the gold away from its present reliance on the US dollar.
Bloomberg Africa reports that the draft bill before the Senate proposes a series of policies that would designate the Central Bank of Nigeria as the automatic purchaser of all gold produced in the country. This means that the 4 per cent gold reserve valued at $34.8 billion in November 2024, is most likely to run into hundreds of billion.
Citing Bloomberg, the largely informal gold mining industry, which currently makes a minimal measurable contribution to the economy, will be integrated into the formal sector and come under the jurisdiction of the Central Bank.
Furthermore, the Red Chamber is proposing the establishment of a Gold Reserve Authority to oversee the management of the country’s gold reserves. This new authority will boost structural development and oversight of the gold reserve management process.
The proposal suggests that the central bank governor, Yemi Cardoso, should lead a newly formed gold reserve management committee. The committee would be responsible for making key decisions regarding the handling and allocation of gold reserves. The composition and functions of this gold reserve management committee are designed to closely resemble those of the central bank’s monetary policy committee.
Recall in June 2024, BUSHLINK had reported that the Minister of Solid Minerals Development, Mr. Dele Alake announced that the Nigerian gold bats transaction contributed to the country’s foreign reserve by $ 5 million.
He had said, “I am proud to announce that this first commercial transaction (of the gold bars) has resulted in a substantial increase of over US$5 million in Nigeria’s foreign reserves assets, the refinement of over 70 kilograms of gold to the London Bullion Market Good Delivery Standard, and the successful aggregation of locally mined gold, injecting around N6 billion into the rural economy”.
