By Jide Ayobolu<\/p>\n
President Muhammadu Buhari has reaffirmed his administration\u2019s
\ncommitment to establish gold refineries in Nigeria, saying that improved
\ngold mining operations in the country would generate no fewer than
\n250,000 jobs and over 500million dollars annually. The President stated
\nthis at the official presentation of locally mined gold bars by the
\nPresidential Artisanal Gold Mining Development Initiative, PAGMDI, at
\nthe Presidential Villa, Abuja. According to President Buhari, this
\nlaudable initiative would support efforts at creation of jobs for
\nNigerians, diversifying the revenue base, and improving foreign exchange
\nreserves. While reiterating the determination of the Federal Government
\nto combat illegal mining activities, the president expressed concern
\nthat Nigeria lost close to three billion dollars from 2012 \u2013 2018 due
\nto illegal smuggling of gold. \u201cWith the implementation of the PAGDMI
\nscheme which will result in the set-up of accredited gold buying centres
\nacross key mining areas, artisanal miners and SMEs engaged in mining
\nwill be able to capture the value of their work. \u201cThese operations
\nwill help in diversifying our revenue base. The sale of gold by
\nartisanal miners and SMEs at accredited centers will help the government
\nin realizing royalties and taxes from the sale of these assets. \u201cThese
\ndevelopments will also help in improving our foreign reserves by
\nenabling the Central Bank of Nigeria to increase the amount of gold in
\nits reserves. \u201cThese gold assets which will be purchased in Naira,
\nwill not only help to bolster our international reserves, but also
\nprovide a hedge against inflation and other economic volatilities
\nassociated with foreign currencies that are held in our reserves,\u201d the
\nPresident said.<\/p>\n
President Buhari noted that in addition to the potential revenue gains
\nthat will occur from mining operations, efforts are being made to enable
\nthe setting up of gold refineries in Nigeria. He expressed optimism that
\nthese measures would lead to the creation of additional job
\nopportunities across the gold value chain and also help the nation
\ncapture the additional value created from the gold refining process. On
\nenvironmental degradation, Mr Buhari pledged that the Government would
\npay close attention to safety and environmental measures to protect
\nworkers and the environment. The Nigerian leader also used the occasion
\nto commend all stakeholders involved in the PAGMI for their painstaking
\nefforts in developing a programme aimed at improved sourcing and
\nrefining of high-quality gold bars, derived from minefields in Nigeria.<\/p>\n
The President recalled that the PAGMI, which was launched in 2019, was
\nwell timed, considering the impact of COVID-19 on the global economy and
\nindeed on the Nigerian economy. He said the impact of COVID-19 and the
\ncontainment measures designed to slow the spread of the virus, had led
\nto a slowdown in global growth, which is projected to decline into
\nnegative territory for the first time since the Great Depression. \u201cIt
\nhas also led to a 40 percent drop in crude oil prices. In Nigeria, the
\ndrop in crude oil prices has had a significant impact on government
\nrevenue, as well as on our foreign exchange earnings. \u201cIn responding
\nto this challenge, it is therefore paramount that we strengthen our
\nefforts at implementing policies and programs that will enable greater
\ndiversification of the Nigerian economy. \u201cEnabling investment in the
\nSolid Mineral sector, is a key part of the government\u2019s economic
\ndiversification program. \u201cGiven our current estimated gold reserves of
\nover 200m ounces, most of which have not been exploited, developing
\nsustainable programmes that will catalyse increased investment in the
\nextraction and refining of gold sourced from mines in Nigeria, is indeed
\nvital,\u201d he said. While emphasizing the benefits of the PAGMDI, the
\npresident explained that it will support job creation efforts
\nparticularly for artisanal miners, by providing them with a guaranteed
\nofftake by the Central Bank of Nigeria.<\/p>\n
According to him, efforts are being made to support artisanal miners in
\nimproving the standard of the gold that will be sold to the apex bank,
\nin order to ensure that they meet international benchmarks. He added
\nthat the initiative would enable the deployment of financing schemes
\nthat would help miners improve on the quality of their mining
\noperations. \u201cThe gold buying program by the Central Bank will ensure
\nthat artisanal miners are no longer subjected to the volatility in gold
\nprices that occurs in the absence of credible off-takers, which has
\noften led to a significant loss in the value of gold sold by miners, as
\nwell as in encouraging illegal smuggling,\u2019\u2019 he said.<\/p>\n
Nigeria\u2019s new gold development initiative has the potential to ensure
\nthe economy remains strong and resilient to withstand the exogenous
\nshocks noticed globally. Central Bank of Nigeria Governor, CBN, Godwin
\nEmefiele, Speaking with State House Correspondents in Abuja said the
\ninitiative is aimed at diversifying the revenue base of the Nigerian
\neconomy. This is as Federal Government could rake in additional
\nestimated revenue annual average of $150 Million in taxes, $25 Million
\nin royalties, and $500 Million accretion to foreign reserves from the
\nintegration of artisan gold mining activities \u2018\u2019We will say that
\ntoday this has been actualised in the sense that other than receiving
\ndollar revenue from proceeds of sale of crude oil, we have today
\nreceived into our reserves through the purchase of this 12.5kg purified
\ngold bar into our reserves, we have today received gold\u00a0 into our
\nreserves\u201d Following the successful launch of the program, Central Bank
\nwill now be purchasing gold that has been mined, processed and refined
\nunder the Presidential Artisanal Gold Mining Development Initiative
\nPAGMDI for use as part of Nigeria\u2019s external reserves. \u201cPAGMI will
\nresult in the creation of over 500,000 new mining and formalized jobs,
\nleading to poverty alleviation for more than 1 million households.<\/p>\n
The artisanal gold miners, according to Emefiele, earn more from higher
\nproductivity, achieve better recovery rates through mechanization of
\noperations, and better access to reliable geological information.
\n\u201cLike you all know, gold is valued in the international market in
\ndollars so what does that mean? This gold is valued at dollar sum that
\nwill go into our reserves and what does that also mean that for those
\nwho feel that the only way they can analyse Nigeria is to say what is
\nthe price of crude, is the price of crude high or is the price of crude
\nlow, they will now begin to see that at this time when the price of
\ncrude is low, the price of gold is rising.<\/p>\n
The CBN Governor assured Nigeria\u2019s friends both locally and
\ninternationally to that the \u201cNigerian government supported by the
\nmonetary authorities is doing everything possible to diversify the base
\nof the Nigerian economy and in the coming weeks and months, adding that
\n\u201cNigerians and the world will see more that is going to be done in
\nimproving the output from our agricultural sector , improving
\nproductivity from the manufacturing sector , doing everything to make it
\neasy for goods to move from farms to market in Nigeria. \u201dAll this are
\nbeing done to ensure that the Nigerian economy remains resilient to
\nwithstand any shock that may come our ways The gold initiative is seen
\nas a milestone in the country\u2019s commitment to diversifying Nigeria\u2019s
\neconomy and foreign reserves, coming after 24 months of intense efforts
\nbetween the Solid Minerals Development Fund, Kebbi and Osun States
\nGovernment, Ministry of Mines and Steel Development, and the Ministry of
\nFinance, Budget, and National Planning under a Steering Committee led by
\nthe Chief of Staff to the President, Ibrahim Gambari.<\/p>\n
The initiative is also expected to boost national identity management
\nthrough the biometric registration of over 20, 000 artisanal miners
\nnationwide. The PAGMI will also ensure that responsible sourcing
\nstandards, as outlined in the OECD Due Diligence Guidance, are adhered
\nto, and the gold bars delivered to the Central Bank of Nigeria are
\nResponsibly-Sourced, and LBMA Certified. Health, Safety and
\nEnvironmental Benefits: From 2010 to 2016, there were more than 7,000
\nincidences of lead poisoning, resulting in 700 deaths, related to gold
\nmining activities in Zamfara and Kebbi alone. The recorded lead levels,
\nat 23,000 ppm, were more than 55x the maximum acceptable level for
\nenvironmental lead levels (400 ppm). \u201cEffective implementation of
\nPAGMI will help to control the use of lead, mercury, and cyanides. PAGMI
\nwill also improve the working condition of artisanal miners, thereby
\nreducing the number of in-pit deaths that are seen on an annual basis\u201d<\/p>\n
If you are thinking of investing in gold, you will need some reliable
\ninformation to guide your decision. Below are seven critical facts and
\nbenefits of investing in gold.<\/p>\n
Unlike common coins, paper currencies, or other types of assets, gold is
\nknown for maintaining its value over centuries. The unique physical
\nproperties of gold are also highly esteemed. The precious metal is known
\nfor its resistance to corrosion and the fact that it can be melted. This
\nallows it to be worked with very quickly or stamped as a coin.<\/p>\n
It is usually a good idea to hold some physical gold in the form of
\ncoins or bars. However, there are also other convenient options
\navailable for anyone looking to invest in gold. One way to profit from
\ngold is to invest in gold mining shares. This allows you to reap the
\nbenefits of gold price increases without the hassle of storing the
\nphysical metal. During gold bull markets, mining shares often outpace
\nthe price of gold. If you want to hold physical gold, you will need to
\ndecide what form it will take. Gold bars look impressive, but they tend
\nto be quite heavy and awkward to store. You would need to invest in a
\nsafe or use a bank to store your gold. If you decide to buy coins, you
\nwill need to determine if you want collector coins or freshly minted
\nones. When you buy collectible coins, you are paying a premium for the
\nuniqueness of the investment and the scarcity that it represents. Newly
\ncreated coins are often recommended for those who are not taking up gold
\ncoins as a hobby.<\/p>\n
Gold has a well-earned reputation for making a great hedge against the
\ninflation that can eat away at the value of paper assets. No matter what
\nhappens to gold, it will retain the value that it took to mine and
\nproduce it, while paper assets can theoretically go to zero. During
\nperiods of high inflation in the past, the stock market has often
\nplunged, while the price of gold soared. This is because paper currency
\nloses its purchasing power against gold because gold is priced in that
\ntype of currency. People tend to buy gold at an increased rate when
\ntheir local currencies are plummeting in value.<\/p>\n
Markets hate uncertainty. Gold is historically known for retaining its
\nvalue regardless of external political conditions. Whenever there is a
\npolitical crisis, gold tends to take off. People love the safety that
\ninvesting in gold delivers.<\/p>\n
Much of the available gold supply is the result of global central banks
\nselling gold bullion. Generally, when the amount of gold decreases, the
\nprice of gold increases.<\/p>\n
Gold-based IRAs are becoming increasingly popular these days. Backing
\nyour IRA with gold offers excellent protection for your retirement funds
\nwhen market changes can implode your overall investment portfolio. The
\ngold IRA is a retirement account that is approved by the government and
\nbacked by physical gold. Traditional IRAs are often loaded with equities
\nfrom a time when the economy and government was more stable. The global
\neconomy is showing signs of weakness. Therefore, paper assets are too
\nmuch of a risk for many investors. Especially given the events of the
\nGreat Recession, the uncertainties of investing in paper assets led to
\nthe reduction of the retirement accounts of several people.<\/p>\n
A gold based IRA can offer substantial portfolio diversification that
\nhedges against risks in the overall market. It can also protect your
\nhard-earned money from the forces of inflation and unsound fiscal
\npolicy.<\/p>\n
Emerging markets, like highly populated India and China, have increased
\nthe demand for gold. Gold typically has a more prominent place in the
\nculture of these types of countries. Gold demand in China has been
\nsteady among those who view gold bars as a traditional type of savings.
\nIn India, gold is highly valued during the wedding season, increasing
\nthe global demand for gold<\/p>\n","protected":false},"excerpt":{"rendered":"
By Jide Ayobolu President Muhammadu Buhari has reaffirmed his administration\u2019s commitment to establish gold refineries in Nigeria, saying that improved gold mining operations in the country would generate no fewer…<\/p>\n","protected":false},"author":1,"featured_media":73,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-74920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\n