The Senate has passed, for second reading, the Gold Reform Bill’, which seeks the federal government’s takeover of all lands with deposits of gold resources from state governments and private individuals.

The bill sponsored by Senator Natasha Akpoti-Uduaghan, if assented to by President Bola Tinubu, will enable the FG to have regulatory oversight and promote responsible exploitation of the country’s gold reserves.

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.”

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.”

Section 11(1) of the bill warned that there would be heavy punishment for unauthorised persons found exploiting “gold resources in Nigeria or divert or impound water for the purpose of gold mining except as provided in the Mining Act.”

Section 12(1) of the bill barred the mining of gold from taking place in unauthorised areas to preserve lands of significant cultural, historical, and infrastructural value. 

“No gold mining title granted under this bill shall authorise exploration or exploitation of gold resources on or in…any town, village, market, burial ground or cemetery, ancestral, sacred or archaeological site.”

The bill also barred gold mining within 50 metres of pipelines, railways, or public roads. Section 12(3) provides a detailed licensing framework for stages of gold mining, from exploration to processing, including exploration licenses, prospecting licenses, mining leases, and environmental compliance licenses, to be monitored and regulated by the FG.

It stated that companies to be issued the licences must obtain an environmental compliance licence to ensure adherence to environmental standards.

The bill, in section 12(3)(h), also provided for a “community engagement license,” mandating miners to “outline initiatives and commitments to mitigate the social impact of mining activities on the host community.”

Section 15(1) of the bill provided for financial incentives to eligible gold mining operators who “shall be entitled, in determining its total profits, to deduct from its assessable profits a capital allowance of 95 per cent of qualifying capital expenditure incurred.”

According to (section 16), they will also get customs duty exemptions for the importation of machinery and tax relief for up to three years, with the possibility of a two-year extension. 

Section 18 provides a gold mining title holder with “guaranteed free transferability through the Central Bank in convertible currency.”

To ensure responsible land management and minimised ecological damage to preserve the environment for future generations, section 21 of the bill mandates gold mining companies to establish a “tax-deductible reserve for environmental protection, mine rehabilitation, reclamation, and mine closure costs.” 

However, the public hearing of the bill has been suspended indefinitely.