The Nigerian Senate has taken a significant step towards centralizing control over the country’s gold reserves, passing the Gold Reform Bill for second reading.
Sponsored by Senator Natasha Akpoti-Uduaghan, the bill seeks to transfer ownership of lands with gold deposits from state governments and private individuals to the federal government.
If signed into law by President Bola Tinubu, the bill will grant the federal government regulatory oversight and promote responsible exploitation of Nigeria’s gold resources. Section 10(2) of the bill states that all lands with commercial quantities of gold will be acquired by the government, in line with the Land Use Act. This move is expected to enhance the country’s economy and reduce dependence on federal allocations.
The bill prohibits gold mining in areas of cultural, historical, or infrastructural significance, including towns, villages, markets, burial grounds, and cemeteries, as well as ancestral, sacred, or archaeological sites. Additionally, gold mining will not be allowed within 50 meters of pipelines, railways, or public roads.
To ensure responsible land management and minimize ecological damage, gold mining companies will be required to establish a tax-deductible reserve for environmental protection, mine rehabilitation, and mine closure costs . The bill also provides for financial incentives to eligible gold mining operators, including capital allowances, customs duty exemptions, and tax relief.
In related news, a bill aimed at ceding mineral resources to states has also scaled through second reading. This legislation seeks to grant states the power to control revenues derived from mineral resources, promoting economic diversification and specialization.
The Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 has also passed second reading at the House of Representatives. This bill aims to repeal the Nigerian Shippers’ Council Act and enact the Nigerian Shipping and Port Economic Regulatory Agency Act, creating an effective regulatory regime for Nigerian ports.
These developments reflect the Nigerian government’s efforts to reform the mining and shipping sectors, ensuring responsible exploitation of natural resources and promoting economic growth.
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