The Nigerian Senate has taken a significant step towards enhancing the country’s position in the global gold market by passing the Nigerian Gold Reserve Bill for a second reading. The bill, sponsored by Senator Natasha Akpoti-Uduaghan, representing Kogi Central, aims to harness Nigeria’s gold reserves to boost economic stability and promote sustainable mining practices.
During her lead debate, Senator Natasha stressed the importance of gold reserves for economic stability, citing the historical strength of the Naira when its value was measured against gold. She highlighted the potential for Nigeria to stabilise its economy by leveraging its gold reserves, especially as the value of a gram of gold is approximately $75.70.
The proposed legislation seeks to establish the Nigeria Gold Authority (NGA), which will be responsible for administering the Nigerian Mining Act concerning gold resources, thus creating a robust gold reserve industry. This initiative is seen as a bulwark for a resilient economy that can create jobs and stimulate economic growth.
One of the significant aspects of the bill is its aim to diversify Nigeria’s reserve base by increasing the gold reserve ratio, which is currently less than 2% of the total foreign reserve. By positioning the Central Bank of Nigeria as the ultimate off-taker of all domestically produced gold, the bill seeks to hedge the Naira against depreciation and protect the economy from inflation.
The bill received strong support from senators who recognised its potential to contribute to Nigeria’s economic growth and development. Senator Adetokunbo Abiru described the bill as “timely and important,” while Senator Adeola Olamilekan commended Senator Akpoti-Uduaghan for addressing illegal gold mining. Senator Sanni Musa noted the bill’s potential to create job opportunities and help end illegal mining. Senator Isah Jibril Echocho praised the initiative for enhancing gold reserves utilization and strengthening the Naira. Senator Adams Oshiomhole suggested including capital punishment for illegal gold mining offenses.
In addition to the advancements in the gold reserve bill, Senator Natasha Akpoti-Uduaghan has also drawn attention to idle government funds valued at N500 billion. She emphasised the necessity for government agencies to ensure that these funds reach Nigerians with innovative ideas who can create value from the money.
The progress of the Nigerian Gold Reserve Bill reflects the commitment of Nigerian lawmakers to drive economic growth, promote sustainable practices, and enhance the country’s global standing in the gold market. As the bill advances, it holds the potential to create valuable job opportunities, strengthen the Naira, and secure a stable economic future for Nigeria.