Nigeria’s economic development may receive a significant boost from gold mining and trading as gold prices hit $2000 and it's expected to increase the country's yearly revenue in taxes, royalties, foreign exchange reserves, and create more jobs.

As part of the economic diversification and reforms in the solid minerals sector, Nigeria has started refining its own reserve gold bar and has paid N268 million for a 12.5 kg bar to start a central bank stock.

According to Mr. Lukman Otunuga, the Senior Research Analyst, FXTM, the increase in the prices of both gold and oil is a timely and positive indication that Nigeria’s investment is moving in the right direction amidst the COVID-19 pandemic as gold remains a market-moving and safe-haven asset

The precious metal appreciated almost 30 percent for the year-to-date as it heads to some $2,000.

“There are several factors over-and-above the COVID-19 disease that are supporting gold prices. Safe-haven buying triggered by fears over tense United States-China relations has boosted the metal’s spot and futures prices. In recent events, the US closed one of its six consulates in China and a Chinese consulate in Houston was closed, raising questions about whether the second phase of trade talks can make any constructive progress,” Otunuga said.

He added that investors now prefer to trade gold over a dollar because...SEE MORE HERE

Nawa