Zamfara Govt, CBN in N5bn gold deal

Governor Bello Matawalle of Zamfara State has entered into a N5 billion gold supply deal with the Central Bank of Nigeria (CBN).
The governor made the disclosure on Tuesday in Gusau, at a press conference to present the 31-kilogramme Zamfara processed gold.
He said that the state government would, at an agreed time during the year, supply the gold equivalent of the amount.
“Following the global acceptance of the high quality of the gold dug from the state, the apex bank approached us with the deal, which we believe is a good business.
“At the moment, we have commenced our gold reserve with this 31 kilogramme of pure gold and I have presented the sample of the commodity to the president.
“This is the first of time, in the history of our country, that a state will discover its internal potential in gold and channel it in developing the economy of the state,” Matawalle noted.
He said that the state’s gold reserve would be deposited in an undisclosed designated place, which could be utilised in times of need.
“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.
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 kilogramme.
He, however, referred to google for the price, which he explained, changed on an hourly basis, sometimes.