Heritage Bank-Dukia Gold to Boost Nigeria's 200mn Ounces of Gold Potential Reserves - FG

Monday, June 15, 2020 / 07:37 PM / By WebTV Market Review / HeaderImage Credit: EcoGraphics

...The Launchof the Nationwide Dukia-Heritage Bank Gold & Precious Metals Buying Centrewill fast-track 10% contribution of mining sector to GDP by 2026

The FederalGovernment of Nigeria has commended Heritage Bank for being part of a valuableprivate sector collaboration with Dukia Gold & Precious Metals Refining Co.Ltd and other stakeholders, saying such partnerships stands to create newopportunities for Nigeria to grow its potential reserves of 200 million ouncesof gold.

The VicePresident, Yemi Osinbajo, disclosed this during a Zoom 'Meet & Chat" session, of the virtual platform at the launch of the nationwide Dukia-Heritage Bank Gold & Precious Metals Buying Centre,supported by the High Commissions of Nigeria and Canada, held last week.

Prof.Osinbajo remarked that the launch of this project between Heritage Bank and 'Dukia Gold SPV' would enable Nigeria to mine reserves properly, traderesponsibly, refine locally and boost the nation's foreign reserves.

He stated:

"The DukiaGold & Precious Metals Refinery Project, championed by the High Commissionsof Nigeria and Canada, has been seven years in the making and it is my pleasureto see that the project is ready to begin operations. What we are looking athere is an extremely valuable new source of trade, jobs and foreign exchange.

This projectwill create primary employment for local artisanal miners and miningcooperatives, and across the solid minerals value chain. Off-take agreementsbetween Dukia Gold and local mining communities and owners of recyclable goldwill be a useful provider of jobs in our post-covid economy.

The positivemultiplier is expected to extend even further than this as the Dukia Goldproject will also encourage the emergence of smaller-scale mining companieswho, for the first time, will now have a transparent and welcoming market fortheir mined gold and precious metals. This is set to create jobs and unleashthe economic potential of mining communities."

Osinbajofurther counted the enormous benefits of the project, stating that "thisprovides a sustainable way for Nigerians to exchange their gold jewelry andother precious items for cash. This system of exchange not only helps encouragea culture of recycling, but will also serve as a complementary source for theraw materials needed for the Dukia Gold & Precious Metals Refining Company.These buying centers will also enable the responsible management of some ofelectronic waste."

According tothe promoters, the project would further drive the diversification of thenation's economy through the new gold and precious metals market that will growthe mining industry's contribution to gross domestic products to over 10% by2026.

Records haveshown that the growth of mining production at the end of 2019 in Nigeria was0.1% and the sector still contributes less than 0.5% of GDP compared to otherAfrican economies who are strong in mining like Botswana (38%), DemocraticRepublic of Congo (25%), South Africa (18%), Zambia (18%), Guinea (12%) andGhana (7%).

In hisremarks, the MD/CEO of Heritage Bank Plc, Ifie Sekibo stated that thispartnership would boost the mining industry's productive capacity and open up anew market, through the virtual platform.

According toSekibo, the operationalization of this initiative aligns with the overallEconomic Transformation Agenda of the Federal Government of Nigeria especiallyas it relates to the full stream diversification of the Nigerian economy, joband wealth creation, development of the solid mineral space amongst others.

Sekiboaffirmed, "It is our believe that as the economy of Nigeria is beingrecalibrated, given the impact of the global pandemic, the government'scommitted aspiration to build a robust and resilient economy will be furtherenhanced through the operationalization of this initiative working with allstakeholders across States and Government Parastatals, the Central Bank,Private Sector and other international actors towards the development of the solidminerals sector and its appendages."

He explainedthat this would enhance a regulated market that would see precious metals andother commodities take center stage in endeavour to ensuring irreversibleeconomic growth and development in alliance with a modernized Exchange forcommodities trading in Nigeria.

AttendanceRoll Call

Vice President, His Excellency Yemi Osinbajo
Ekiti State Governor and Chairman of the Governors Forum, Governor. John Kayode Fayemi
Zamfara State Governor, Bello Muhammad Matawalle
Minister of Mines and Steel Development, Arc. Olamilekan Adegbite
Minister of State, Mines and Steel Development, Dr. Uchechukwu Ogah
Minister of Finance, Budget and National Planning, Zainab Ahmad
Director, Global Head, Advisory and Capital Markets, AFREXIM Bank, Mr. Ibrahim Sagna
Executive Secretary, Solid Minerals Development Fund, SMDF, Hajia Fatima Shinkafi
Managing Director, Lagos Commodities and Future Exchange, Mr. Akin Akeredolu-Ale
Managing Director, Dukia Gold and Precious Metals, Bose Owolabi
Nigerian High Commissioner to Canada, Mr. Adeyinka Asekun
Managing Director, PAC Capital, Mr. Humphrey
Director Olympus International Mining Analytical Instruments, Todd Houlahan
President, Nigeria Computer Society, Prof. Adesina Shodiya
Chairman of Heritage Bank, Alhaji Jani Ibrahim
Esteemed Financial Professionals and Stakeholders in the Mining Industry