Zamfara To Supply Gold To CBN For N5 Billion, Says Decision Is For ‘Wellbeing Of Its People’

Zamfara State Government will receive the sum of N5 billion from the Central Bank of Nigeria (CBN) for the supply of gold equivalent of the amount to the apex bank.

Governor Bello Muhammad Matawalle disclosed at a press conference to present the 31-kilogramme Zamfara processed gold in Gusau on Tuesday, October 6, 20202.

Matawalle said his administration has entered into a N5 billion gold supply deal with the CBN, adding that the move is a determined attempt to diversify Zamfara’s economy, and guarantee the social wellbeing of its people.

“This strategic decision is part of the effort to prop up the economy of the state and guarantee the economic and social wellbeing of our people now and in the future. It is also the first of its kind by any state in the federation.

“For a start, we have purchased 31 kilogramme of gold, wholly mined and refined by our artisanal miners. We will subsequently continue to buy gold from our local miners so as to gradually improve the reserve. The precious metal would be deposited in a bank.

“Even though our state like other states of the federation is grappling with competing demands from the public and the resources at our disposal are meagre, we feel it is of utmost significance to invest in the future of our people,” Governor Matawalle said.

He further explained that the recent collapse of the oil market had further shown the need to diversify the state’s economy as a safeguard from the uncertainties of the market.

“The establishment of the gold reserve, therefore, is part of the relentless effort by my administration to diversify the state’s economy.

“We have to diversify our state economy, especially with the bitter economic experience we went through as a result of the COVID-19 pandemic, collapse in oil prices and other economic uncertainties cutting across the globe.

“In gold, however, we expect better and higher returns than in other stocks because there is higher multiplier effect in gold and it will enhance the gains of our local miners towards the attainment of the Zamfara of our dream,” he said.

Meanwhile, the News Agency of Nigeria (NAN) reports that the governor did not state the current market price of gold so as to know how much it would cost the state government to buy the 31 kilogram.

KanyiDaily recalls that Bloomberg had reported that Nigeria has started the construction of the country’s first-ever gold refinery which will create 500,000 jobs when it is completed in Mowe, Ogun State.