The Senate has passed the second reading of the “Gold Reform Bill,” a proposed legislation that aims to transfer ownership of all lands containing gold deposits from state governments and private individuals to the federal government.
If signed into law by President Bola Tinubu, the bill would allow the federal government to oversee and regulate the responsible exploitation of Nigeria’s gold reserves.
The bill, introduced by Senator Natasha Akpoti-Uduaghan, stipulates that any land containing commercially viable gold deposits would be acquired by the federal government upon the bill’s enactment, in line with the provisions of the Land Use Act.
It further specifies that control over all gold deposits in Nigeria, whether under or on land, will be vested in the federal government on behalf of the people of the nation.
One of the key provisions of the bill mandates that gold exploration and mining activities in Nigeria be regulated exclusively by the federal government, with the Ministry of Mines and Steel Development designated as the sole authority responsible for enforcing the Mining Act.
The bill prohibits any unauthorized exploration or exploitation of gold resources, warning that violators could face severe penalties.
The bill also lays out restrictions on mining activities in areas of cultural, historical, or infrastructural significance. Gold mining will be prohibited in towns, villages, burial grounds, sacred sites, and within 50 meters of critical infrastructure such as pipelines, railways, and public roads. Additionally, it forbids gold exploration on land dedicated to military use.
For companies engaging in gold mining, the bill introduces a comprehensive licensing framework that includes licenses for exploration, prospecting, mining leases, and environmental compliance. A community engagement license will also be required, mandating miners to address the social impacts of their activities on local communities.
To encourage investment in the sector, the bill provides financial incentives for eligible gold mining operators, including tax relief, customs duty exemptions, and capital allowances for qualifying expenditures. Operators will also be entitled to tax exemptions on machinery imports and enjoy up to five years of tax relief.
Environmental stewardship is another focal point of the bill. Gold mining companies will be required to set aside funds for environmental protection, mine rehabilitation, and reclamation efforts. Additionally, a reserve for mine closure costs must be established, ensuring that ecological damage is minimized and that future generations are not burdened by the environmental consequences of mining activities.
Despite the passing of the bill’s second reading, the public hearing has been suspended indefinitely.
“Section 10(2) of the bill, which it said is in line with the Land Use Act, provides 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,” according to the bill.
The bill also provides that “The entire property in and control of gold, under or upon any land in Nigeria, shall be vested in the government of the federation for and on behalf of the people of Nigeria.
“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 in accordance with the provisions of the Land Use Act.”
The bill also stated, “The authority shall administer and enforce the provisions of the Mining Act for the purposes of this bill to the exclusion of any other authority.”
The bill, however, prohibited the “exploration or exploitation of gold without authority,” stating, “No person shall search for or exploit gold resources in Nigeria or divert or impound water for the purpose of gold mining except as provided in the Mining Act.”
“Lands excluded from gold exploration and exploitation. No gold mining title granted under this bill shall authorise, exploration or exploitation of gold resources on, or in, or the erection of beacons on or the occupation of any land set apart for, or used for, appropriated, or dedicated to any military.”
