Minister of Solid Minerals Development, Dele Alake, presented gold bars to President Bola Tinubu, emphasizing the potential of the solid minerals sector to strengthen the nation’s currency, The Nation reported.
The occasion marked a milestone for the National Gold Purchase Programme (NGPP), an initiative championed by the Ministry to enhance Nigeria’s reserves by leveraging locally mined gold. Alake, speaking during the presentation ceremony, underscored the strategic importance of the programme in bolstering foreign reserves and stabilizing the value of the Naira.
The gold bars, sourced from artisanal and small-scale miners and refined to meet the stringent London Bullion Market Good Delivery Standard, symbolized a successful inaugural commercial transaction under the NGPP. This achievement, according to Alake, not only demonstrated the programme’s effectiveness but also highlighted its potential to contribute significantly to fiscal and monetary stability.
"The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness," Alake stated. "It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy."
The presentation of over 70 kilograms of refined gold, equivalent to approximately $5 million in increased foreign reserves, also injected approximately NGN 6 billion into the rural economy through the involvement of local miners and cooperatives. This dual impact on reserves and rural economic development underscores the broad-reaching benefits envisaged by the NGPP.
President Tinubu, acknowledging the significance of the initiative, praised the Ministry for its role in advancing the country’s economic diversification agenda. "This is another concrete step towards the diversification process under the Renewed Hope Agenda," remarked President Tinubu, highlighting the administration’s commitment to reducing dependence on oil revenues.
Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, elaborated on the international standards met by the refined gold, noting its acceptance in global trade as per the London Bullion Market criteria. "Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London," Shinkafi explained.
She further emphasized that Nigeria’s adoption of such standards positioned the country among a select group globally enhancing their gold reserves through local currency purchases. This move not only fosters economic confidence but also creates a more stable environment for foreign investment, supporting Nigeria’s broader economic growth objectives.