The federal government disclosed that Nigerians would soon be able to use gold as collateral in exchange for credit from financial institutions.
This was disclosed by the Minister of Mines and Steel Development, Olamilekan Adegbite, on Sunday.
Adegbite said that the ministry was in talks with some financial institutions to allow the use of gold as collateral.
He said that the aim of the initiative is to “revive the mines and steel industry” in the country.
He also noted that when gold is used to collect loans from banks, the value of the mineral would be boosted, and the mines and steel industry would rise to significance in the country.
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Adegbite explained, “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.”
