Nigerian government has inaugurated the Dukia Gold Refinery Project to boost small scale mining operations.
The Federal Government on Wednesday commissioned the operations of Dukia Gold and Precious Metals Project (DGPMP). This project is geared towards mining Nigeria’s gold reserves, as well as trading responsibly and optimizing the use of our gold refinery.
The Vice President, Prof. Yemi Osinbajo, who commissioned the project via a Zoom- meet and chat session, said: “What we are looking at here is an extremely valuable new source of trade, jobs, and foreign exchange.”
This project will, directly and indirectly, create employment for local artisans, miners, and mining cooperatives. Its impact will also cut across the solid minerals value chain. Off-take agreements between Dukia Gold and local mining communities and owners of recyclable gold will be a useful provider of jobs during the post-COVID economy.
Furthermore, the Vice President said, “The positive multiplier is expected to extend even further than this. The Dukia Gold Refinery Project will also encourage the emergence of smaller-scale mining companies. These companies will for the first time, now have a transparent and welcoming market for their mined gold and precious metals. The project is set to create jobs and unleash the economic potential of mining communities.”
Dukia Gold Refinery Project And Complementary Centers
The Vice President was delighted to witness the completion of the Dukia Gold Refinery Project. And, while commissioning their operations, he iterated his joy of seeing the project completed after seven years. The Dukia Gold and Precious Metals Project provide a sustainable way for trade and commerce.
In addition, the Vice President also commissioned the Dukia-Heritage Bank Gold and Precious Metals Buying Centers. These centres are an integral part of valuable private sector collaboration. The centres would provide a sustainable way for Nigerians to exchange their gold jewelry and other precious items for cash.
More so, this system of exchange will not only help encourage a culture of recycling but will serve as a complementary source for the raw materials needed for DGPMP. In addition, these buying centres will enable the responsible management of some of the electronic waste.
Impact On GDP
Nigeria has potential reserves of 200 million ounces of gold reserves. So, the project will foster and further drive the diversification of the nation’s economy. Nigeria has birthed a new gold refinery and precious metal market against the backdrop of its bleeding economy. This will grow the mining industry’s contribution to gross domestic products.
Recall that according to statistics, the growth of mining production at the end of 2019 in Nigeria was 0.1%. This sector still falls under the category that contributes the least to the Nigerian Gross Domestic Product (GDP). It contributes less than 0.5% to the GDP compared to other African economies.
African economies are predominantly active in mining and the activity is making a huge impact on their Gross Domestic Product (GDP). This is what the impact looks like for some countries; Botswana (38%), Democratic Republic of Congo (25%), South Africa (18%), Zambia (18%), Guinea (12%), and Ghana (7%).
Still, in a bid to boost mining operations in Nigeria, the Minister of Mines and Steel Development, Mr. Olamilekan Adegbite licensed two gold refineries; one gold refinery in Abuja and another in Ogun state.
This is a good development and will help diversify the revenue streams of the Nigerian economy. Entrepreneurs should look for ways to tap into this opportunity.