Banks to allow Nigerians use gold as collateral for loans – Minister

The Minister of Mines and Steel Development, Olamilekan Adegbite, on Sunday said banks will soon allow Nigerians, especially owners of Small and Medium Enterprises, to use their gold jewellery as collateral for loan facilities.

He explained that his ministry has decided to revive the industry and at the same time create opportunities for Nigerians, especially SMEs, to raise funds for their businesses.

According to him, “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 Minister explained that all interested Nigerians need to do is to approach the bank, drop the gold in its vault and collect a certificate to that effect.

According to him, “The certificate can be used to obtain a loan from either the same bank where the jewellery was deposited or another financial institution. When the bank has been refunded, the individual gets his certificate/gold back.”