Nigeria Gold Sector Reforms to Deliver Significant Boost to Revenues

SEATTLE (Scrap Monster): The Nigerian President Muhammad Buhari announced the launch of the Presidential Artisanal Gold Mining Initiative (PAGMI). The country aims to reap significant benefits from the changes to its gold mining regulations.

As part of the reforms, artisanal mining has been made legal. Incidentally, the country is believed to have lost approximately $3 billion due to illegal smuggling of gold over the past six years. In addition, the new set of regulations targets to set up accredited gold buying centres across key mining areas.

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The President hoped that the changes will boost the government’s income from royalties and taxes by $500 million per year. Furthermore, it will create approximately 25,000 new jobs across the gold value chain. The extra revenues from gold mining could be of great help to the Federal Government, whose income has seen a drastic cut on account of the pandemic and recent plunge in crude oil prices. At the same time, the administration would ensure safety and protection of workers and the environment, he added.

Meantime, Buhari reiterated his commitment to establish more gold refineries in the country. Earlier in February this year, the country had granted license for two gold refineries, primarily aimed at producing gold to be held in central bank’s reserves. The government has also permitted the refineries to export the locally-produced gold.