A mining sector analyst, Steven Olajumoke, has said that the N26 billion sand mining deal between Japaul Gold and Gravitas Investment Limited will contribute to Nigeria’s Gross Domestic Product (GDP) through taxes, royalties and dividends.
In an interview with New Telegraph over the weekend, he also said it would increase foreign exchange earnings from export of sand and other minerals as well as create over 1,000 jobs during construction and operation.
According to him, it would lead to local content development by increasing opportunities for local businesses to provide goods and services.
He also said the deal would improve infrastructure, including roads, bridges and utilities.
Japaul Gold recently signed a N26 billion sand mining contract with Gravitas Investment Limited to mine 3.5 million cubic meters of sand for the reclamation of Gracefield Island, at the end of Chevron Drive, Lekki, Lagos State, Nigeria.
The deal was announced on November 25, 2024, through a disclosure published on the Nigerian Exchange (NGX) and signed by the Company Secretary, Michael Edeko.
The statement explained that Japaul Gold would play a pivotal role in the reclamation of 200 hectares of land, a development that is expected to usher in a slew of luxurious amenities, including a golf course, golf estate, boat club, yacht parking spaces, and shopping malls.
According to sources, the sand mining project intends to reclaim swamps and lagoons in the area, paving the way for a high-end development that will become a new Banana Island.
Olajumoke said the environmental benefits of the agreement include the reclamation of 200 hectares of swampland; protection of coastal areas from erosion; creation of new habitats for wildlife; reduction of pollution from sand mining activities and enhancement of biodiversity or preservation of natural habitats and ecosystems.
He said: “The deal also has social benefits which include: enhancement of living standards for local communities; provision of luxurious amenities, including a golf course and shopping malls and opportunities for community development and social programmes.
“It will increase opportunities for education and training in sand mining and related activities as well as improved access to healthcare services.”
He added: “The infrastructure development benefits include: construction of new roads and improvement of existing ones; construction of new bridges and improvement of existing ones.
“It would also enhance the provision of essential utilities, including electricity, water, and sewage; improvement in telecommunication services and has potential development of a nearby airport.”
Olajumoke further said the tourism and recreation benefits of the project are: potential development of tourism infrastructure and activities and provision of luxurious recreational facilities, including a golf course and boat club.
He added that it would create jobs in the tourism and hospitality sectors, increase revenue from tourism and recreational activities and create opportunities for cultural exchange and enrichment.
