The Minister of Solid Minerals, Dele Alake, recently presented gold bars to President Bola Ahmed Tinubu, underscoring the crucial role of the solid minerals sector in boosting Nigeria’s foreign reserves and stabilizing its currency. The gold bars, which were sourced from artisanal and small-scale gold miners, have been refined by the Solid Minerals Development Fund to meet the global standard set by the London Bullion Market Association (LBMA).
During the ceremony, Alake praised President Tinubu for his unwavering support of the reforms aimed at revitalizing Nigeria’s mining sector. He emphasized that the National Gold Purchase Programme (NGPP) would not only increase the nation’s foreign reserves but also strengthen the naira’s value against foreign currencies.
This milestone marked the completion of the first commercial transaction under the NGPP, a program that centralizes gold offtakes through a network of small-scale miners and cooperatives across the country. Alake explained that this achievement demonstrates the viability of using Nigerian Naira to purchase a liquid asset like gold, which is typically traded in US dollars. The transaction has already resulted in a $5 million increase in Nigeria’s foreign reserves, as well as the refinement of over 70 kilograms of gold, which now meets the LBMA’s Good Delivery Standard. Furthermore, the aggregation of locally mined gold has infused approximately N6 billion into Nigeria’s rural economy.
In his address, President Tinubu expressed his appreciation for the success of the NGPP, describing it as a significant step towards the administration’s goal of diversifying Nigeria’s economy under its Renewed Hope Agenda.
Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, explained that the LBMA Good Delivery Standard is an internationally recognized benchmark that enables global trade in gold and silver bars. Only gold and silver that meet these stringent standards are accepted for settlement in Loco London contracts, where the bullion is physically stored in London for global transactions.
Shinkafi further highlighted that through the NGPP, Nigeria is joining a select group of nations that are enhancing their gold reserves by purchasing gold with their local currency. This move is expected to not only boost economic confidence and currency stability but also attract more foreign investments into Nigeria’s growing mining sector.
The successful launch of the NGPP is seen as a promising step in Nigeria’s economic diversification efforts, marking a shift towards utilizing the country’s abundant mineral resources for national growth.
