The Minister of Mines and Steel Development, Olamilekan Adegbite, has stated that business owners would soon be allowed to obtain a loan with their gold in banks.
The value of gold has seen a significant leap since the beginning of the Covid-19 pandemic.
Adegbite, who disclosed this to journalists in Abuja over the weekend noted that the gold jewellery would serve as collateral for SMEs for loan requirements in banks. This according to the Minister will give more options for loan accessibility.
The minister said talks are ongoing with some Nigerian banks to ensure that the gold jewellery is accepted from Nigerians for financial support that its worth.
“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,” the minister concluded.