Metal Price
Scrap Monster
Vulcan
Mining News August 05, 2020 08:05:17 PM

Nigeria's Efforts to Curb Illicit Gold Exports to Boost Revenues

Paul Ploumis
ScrapMonster Author
As per estimates, nearly 18 tonnes of illegally mined gold are exported from the country, without bringing any revenue to the state economy.

Nigeria's Efforts to Curb Illicit Gold Exports to Boost Revenues

SEATTLE (Scrap Monster): Nigeria’s move to curb illegal gold exports out of the country is expected to boost the country’s foreign reserves by hundreds of millions of dollars. The new plan aims to regulate gold production by informal miners. As per estimates, nearly 18 tonnes of illegally mined gold are exported from the country, without bringing any revenue to the state economy.

The Presidential Artisanal Gold Mining Development Initiative (PAGMDI) targets to shift the production of gold by artisanal miners into a supervised supply chain. The informal gold mining industry in the country will be persuaded to be part of the mainstream. This in turn will result in stockpiling of the gold by the central bank. Also, the regulated mechanism would fetch millions of dollars in export tax revenues.

ALSO READ: Zambian Plants Start Processing Artisanal Gold

Based on current gold prices, the program could potentially result in addition of nearly $500 million to foreign reserves and almost $150 million in taxes every year. This will be of great relief for the country’s government, which has been badly impacted by dip in oil prices. Incidentally, oil sales account for nearly 50% of government revenue and the bulk of export earnings.

The improved gold mining operations are likely to generate around 250,000 jobs and over $500 million per annum in royalties and taxes.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin Instagram