The bill proposing the establishment of a Gold Reserve Authority which also tightens the Nigerian government’s hold on gold reserves in the country is reportedly being finalised by members of the senate.
The bill had already passed its second reading earlier on June 5th 2024. It was sponsored by Natasha Akpoti-Uduaghan (PDP, Kogi) and is titled “A bill for an Act to make provisions for Nigeria Gold Reserve Framework and for other Related Matters”.
The bill grants the Federal government the full authority to acquire all gold reserves and land where gold is found in commercial quantities . Nigeria reportedly has an estimated 600, 000 tonnes of gold reserves, worth about $45bn.
The bill seeks among other things: “To establish a gold reserve authority to be saddled with the responsibility for the implementation of the Minerals and Mining Act for the regulation of exploration and exploitation of Nigeria’s gold deposits.
In part II (10) of the proposed piece of legislation under consideration under the subtitle: “Control of property in gold, vested in the State:
(1) The entire property in and control of gold, under or upon any land in Nigeria, shall be vested in the Government of the Federation for and on behalf of the people of Nigeria.
(2) All lands in which gold has been found in commercial quantities shall, from the commencement of this Bill be acquired by the Government of the Federation in accordance with the provisions of the Land Use Act.
(3) The Authority shall administer and enforce the provisions of the Mining Act for the purpose of this Bill to the exclusion of any other authority.
II-(1) No person shall search for or exploit gold resources in Nigeria or divert or impound water for the purpose of gold mining except as provided in the Mining Act…”
Categories of land exempted from gold exploration and exploitation according to the bill include:
Section 12-(1) “No gold mining title granted under this Bill shall authorise, exploration of gold resources on, or in, or the erection of beacons on or the occupation of any land-
(a) set apart for, or used for or appropriated or dedicated to any military purpose except with the prior approval of the President;
(b) within fifty metres of an oil pipeline licence area granted under the Oil Pipe-line Act;
(c) occupied by any town, village, market, burial ground or cemetery, ancestral, sacred or archaeological site, appropriated for railway or situated within fifty metres of a railway, or which is the site of or within fifty metres of any Government or public building, reservoir, dam or public road.”
The bill also recommends that all operators in the gold mining industry shall, among other benefits, be exempted from paying customs and import duties on purchase of plant, machinery, equipment and accessories imported specifically and exclusively for gold mining operations.
Gold reserves will support and stabilise the national currency in the foreign exchange market and boost the country’s reserve if managed properly.
