Mining reforms in Nigeria to rake in 500 million dollars annually

Nigeria is hopeful recent reforms in the mining sector would rake in about 500 million dollars annually through taxes and royalties.

President Muhammadu Buhari who made the call on Thursday said the move will also generate 250, 000 jobs thereby reducing unemployment.

 According to him the  reforms now makes  artisanal mining legal and will create gold buying centres and tax trade of the precious metal.

Illegal mining is rampant in the North West of Nigerian has over the years fueled widespread violence  attribute to “thiefs”.

Unconfirmed statistics reveals thousands of people have been killed in the region in recent years and swathes of the region are inaccessible despite deployment of the  military to tackle the conflict which is unending.

Experts believe the  extra revenues from  the country’s gold could be a lifeline as the coronavirus pandemic and resulting global oil price crash cut off much of the state’s income.

Mr Buhari revealed Nigeria  has lost a total of $3 billion from 2012 to 2018 because of illegal gold mining.

In February, Nigeria licensed two gold refineries mainly to produce gold for the central bank to hold in its reserves but also for export. The bank received its first locally-produced gold bar on Thursday.

The West African country  has largely untapped deposits of 44 minerals including gold, iron ore, coal, tin and zinc, in more than 500 locations, but mining makes up just 0.3% of the economy.

By Fred Dzakpata

 

Gh Extractives

Ghextractives.com is an independent multimedia portal that seeks to provide credible information and news content to readers especially players in the extractive sector in Ghana, Africa and beyond. It also provides a unique platform for players in the energy sector to market their products and reach a wider audience

View All Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.