By Obas Esiedesa
President Muhammadu Buhari on Thursday at the Aso Rock launched the Presidential Artisanal Gold Mining Initiative (PAGMI) with the Federal Government targeting at least 250,000 jobs from improved gold mining operations in the country.
Under the PAGMI, gold mined by artisanal miners will be bought by buying centres, refined to international standards, then sold to CBN for it reserves. The initiative is being piloted with Osun and Kebbi states but will be extended to Kaduna, Niger and Zamfara states.
President Buhari, speaking at the virtual launch, said the initiative would support efforts at creation of jobs for Nigerians, diversifying the revenue base, and improving foreign exchange reserves.
He expressed the determination of the Federal Government to combat illegal mining activities, pointing out that Nigeria lost close to $3 billion from 2012 – 2018 due to illegal smuggling of gold.
According to him, “With the implementation of the PAGDMI scheme which will result in the set-up of accredited gold buying centres across key mining areas, artisanal miners and SMEs engaged in mining will be able to capture the value of their work.
“These operations will help in diversifying our revenue base. The sale of gold by artisanal miners and SMEs at accredited centers will help the government in realizing royalties and taxes from the sale of these assets.
“These developments will also help in improving our foreign reserves by enabling the Central Bank of Nigeria to increase the amount of gold in its reserves.
“These gold assets which will be purchased in Naira, will not only help to bolster our international reserves, it will also provide a hedge against inflation and other economic volatilities associated with foreign currencies that are held in our reserves,’’ the President said.
He explained that in addition to the potential revenue gains that will occur from mining operations, efforts are being made to enable the setting up of gold refineries in Nigeria.
He expressed optimism that these measures would lead to the creation of additional job opportunities across the gold value chain and also help the nation capture the additional value created from the gold refining process.
On environmental degradation, Buhari pledged that Government would pay close attention to safety and environmental measures to protect workers and the environment.
The Nigerian leader also used the occasion to commend all stakeholders involved in the PAGMI for their painstaking efforts in developing a programme aimed at improved sourcing and refining of high-quality gold bars, derived from minefields in Nigeria.
The President recalled that the PAGMI, which was launched in 2019, was well timed, considering the impact of COVID-19 on the global economy and indeed on the Nigerian economy.
He said the impact of Covid-19 and the containment measures designed to slow the spread of the virus, had led to a slowdown in global growth, which is projected to decline into negative territory for the first time since the Great Depression.
Highlight of the event was the presentation of a locally refined gold bar worth N268 million to the CBN governor, Mr. Godwin Emefiele. The gold now belongs to Nigeria’s external reserve.
