The Nigerian Senate has passed the Gold Reform Bill for its second reading, marking a pivotal step towards federal control over lands with gold deposits.
Sponsored by Senator Natasha Akpoti-Uduaghan, the bill seeks to transfer regulatory oversight from state governments and private entities to the federal government, thereby promoting responsible and sustainable exploitation of the nation's gold reserves.
The proposed legislation aligns with the Land Use Act, stipulating that "all lands in which gold has been found in commercial quantities shall, from the commencement of this bill, be acquired by the government of the federation."
This move is intended to centralize control and ensure that gold mining activities are conducted under strict regulatory frameworks. A key feature of the bill is its comprehensive licensing framework, which governs various stages of gold mining, including exploration, prospecting, and processing.
The bill mandates that companies must obtain an environmental compliance license, ensuring adherence to environmental standards. Additionally, miners are required to establish a "tax-deductible reserve for environmental protection, mine rehabilitation, reclamation, and mine closure costs," shows the bill's commitment to minimizing ecological damage.
The bill also introduces financial incentives for eligible gold mining operators, such as customs duty exemptions for machinery importation and tax reliefs, aimed at fostering investment in the sector. However, it strictly prohibits unauthorized gold mining activities, with severe penalties for violations.
Despite its progress, the public hearing for the bill has been suspended indefinitely, highlighting ongoing debates and the need for further deliberation on its implications.
If assented to by President Bola Tinubu, the bill could significantly reshape Nigeria's mining landscape, ensuring that the country's mineral wealth is managed sustainably and equitably for the benefit of all Nigerians.
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