The Minister of Mines and Steel Development, Olamilekan Adegbite, said on Sunday Small and Medium Enterprises (SMEs) would soon be allowed to obtain a loan with their gold in banks.
Adegbite, who disclosed this to journalists in Abuja, said the gold jewellery would serve as collateral for SMEs in need of financial support to grow.
The initiative, according to him, will increase credit availability and collateral options for loans.
The minister said talks are ongoing with some Nigerian banks to ensure the implementation of the initiative.
He said: “We are discussing with some financial institutions to create products to accept the gold jewellery from Nigerians and give them credit that is within the worth of the commodity.”
“The initiative is meant to revive the mines and steel industry. The demand for gold in exchange for loans will improve the value of the commodity and the importance of the sector.
“Banks will keep the gold in their vault and handover a certificate which the small and medium business owners can make use of to secure a loan from either the bank or another deposit money bank.”
Join the conversation
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....