Zamfara State Government has established the first of its kind gold reserve in Nigeria, starting with 31 kg of processed gold, that will be deposited in a bank.
The Governor of Zamfara state, Bello Matawalle disclosed that the gold was entirely mined and refined by local artisanal miners in the state.
Commenting on the motive behind the project and its prospects, Matawalle revealed that the decision to undertake and fully establish the project is driven by economic and social considerations that the project will have on the indigenes in the state and country at large, both at present and in the future.
“My administration will subsequently continue to buy gold from our local miners so as to gradually improve the reserve.
“Even though our state, like other states of the Federation, is grappling with competing demands from the public, the resources at our disposal are meagre. We feel it is of utmost significance to invest in the future of our people.
“The establishment of the gold reserve, therefore, is part of the relentless efforts by my administration to diversify the state’s economy by exploring all potentials of the state, and maximally utilizing them for the benefit of both the present and future generations.”
In the opinion of the governor, the reserve had a relatively better Returns on Investment (ROI) when compared to financial equities such as Stocks. He emphasized the need to diversify the economy, citing the recent collapse of the oil market as justification to diversify into the Solid minerals sector.
Why it matters
Given the present FG’s drive to diversify the economy, this development is a welcome idea and in line with the goal. It has great potential for increased employment generation, higher IGR, savings of hard-earned forex, and other spillover effects on the economy.