In a significant move to bolster Nigeria’s economy, the Minister of Solid Minerals Development, Dele Alake, presented a symbolic gold bar to President Bola Ahmed Tinubu on Sunday.
This event marked a milestone in the country’s National Gold Purchase Program (NGPP), aiming to strengthen the naira and enhance foreign reserves.
Minister Alake expressed gratitude to President Tinubu for his support of reforms in the solid minerals sector. He highlighted that the NGPP’s implementation would play a crucial role in boosting the country’s reserves and stabilizing the naira’s value.
The gold, sourced from artisanal and small-scale miners and processed by the Solid Minerals Development Fund (SMDF), meets the prestigious London Bullion Market Association Good Delivery Standard. Alake noted that the refined gold would be supplied to the Central Bank of Nigeria, further enhancing the country’s foreign reserves.
During the presentation, Alake underscored the significance of the event, which marked the inaugural commercial transaction within the NGPP. This centralized system facilitates gold purchases through a decentralized network of small-scale miners, cooperatives, and production units.
“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. This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”
Alake revealed that the initial commercial transaction resulted in a significant boost of over $5 million to Nigeria’s foreign reserve assets. The process refined over 70 kilograms of gold to meet the London Bullion Market quality standard, aggregating locally mined gold and injecting approximately NGN6 billion into the rural economy.
President Tinubu commended the Ministry’s efforts in advancing economic diversification. He acknowledged the symbolic gold bar as a testament to the government’s commitment to harnessing Nigeria’s mineral wealth for sustainable development.
The presentation of the gold bar not only symbolizes the success of the NGPP but also highlights the potential for Nigeria to leverage its natural resources to achieve greater economic stability and growth.
