ABUJA, Nigeria – The Nigerian Senate has moved closer to establishing a legislative framework for the gold reserve industry, approving a bill for second reading that aims to capitalise on the country’s vast gold reserves.
Sponsored by Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central), the proposed law seeks to enhance the exploitation, regulation, and marketing of Nigeria’s estimated 600,000 tonnes of gold reserves, valued at $45 billion.
A Path to Economic Diversification
In her lead debate, Senator Akpoti-Uduaghan highlighted the bill’s potential to drive economic growth and reduce Nigeria’s reliance on oil revenues.
“This proposed legislation presents a significant opportunity to drive economic growth and diversification by creating a conducive environment for investment in the gold sector,” she said.
“It can attract both domestic and foreign investors, stimulate job creation, and boost revenue streams for the government.”
Key Provisions of the Bill
The bill outlines a comprehensive framework for managing Nigeria’s gold resources, including the establishment of the Nigeria Gold Authority (NGA).
The NGA would be tasked with administering gold-related provisions under the Nigerian Mining Act, ensuring the efficient and transparent management of the country’s gold industry.
The proposed legislation also incorporates stringent environmental regulations to mitigate the ecological impact of gold mining and processing.
“By adhering to international best practices in gold mining and trading, the Nigerian Gold Reserve Bill positions Nigeria as a reliable and responsible player in the global gold market,” Senator Akpoti-Uduaghan stated.
Broad Senate Support
The bill has received widespread backing from senators across party lines, with many emphasising its potential to unlock the economic value of Nigeria’s gold reserves.
Senator Solomon Olamilekan Adeola (APC, Ogun West) underscored the bill’s capacity to stabilise and enhance the value of the naira, suggesting that the country’s currency could appreciate without requiring significant foreign investments.
“This bill, when passed into law, would shore up the value of the naira and contribute to a more robust economy,” he said.
Other senators echoed these sentiments, recognising the legislation as a strategic move to position Nigeria as a competitive player in the global gold market while ensuring long-term economic benefits for its citizens.
Next Steps
The bill will now proceed to committee-level discussions, where its provisions will be further refined before being presented for a third reading.
If passed into law, the Nigeria Gold Reserve Industry Bill could mark a turning point in the nation’s efforts to diversify its economy and leverage its natural resources for sustainable development.
With gold reserves worth billions of dollars, Nigeria has the potential to become a significant player in the global gold market.
By establishing a robust regulatory framework, the country could attract investment, create jobs, and generate much-needed revenue while maintaining environmental and social safeguards.
As the legislative process advances, all eyes will be on the Senate to deliver a law that maximises Nigeria’s gold potential for the benefit of its people.
