Ministry of Solid Minerals Boosts Foreign Reserves with $5M Gold Transaction, Alake Presents Bars to Tinubu

Segun Atanda/

Solid Minerals Development Minister, Dr. Dele Alake, has lauded President Bola Ahmed Tinubu for his steadfast support of reforms in the solid minerals sector.

During a presentation ceremony, Alake highlighted the National Gold Purchase Programme’s pivotal role in bolstering Nigeria’s foreign reserves and strengthening the Naira.

The ceremony marked a significant milestone with the delivery of refined gold bars sourced from artisanal and small-scale miners. These bars, refined to meet the stringent London Bullion Market Association Good Delivery Standard by the Solid Minerals Development Fund, are set to be sold to the Central Bank of Nigeria, further fortifying the country’s foreign reserves.

Alake emphasized that this transaction represents the inaugural commercial exchange under the National Gold Purchase Programme (NGPP), which integrates a decentralized network of artisanal miners and cooperatives. He expressed confidence in the programme’s capacity to enhance fiscal stability and monetary confidence through strategic investments in gold.

“This transaction underscores the viability of using the Nigerian Naira to purchase gold, a liquid asset traded in US Dollars,” Alake said. “It signifies a pivotal step towards economic diversification and sustainable growth.”

Highlighting the economic impact, Alake reported a notable increase of over $5 million in Nigeria’s foreign reserves, along with the refinement of 70+ kilograms of gold. He also underscored the programme’s role in injecting approximately N6 billion into the rural economy through effective aggregation of locally mined gold.

Tinubu, upon receiving a symbolic gold bar, commended the Ministry for achieving a significant milestone in diversifying the economy.

He said, “This is another concrete step towards realizing our Renewed Hope Agenda.”

In her remarks, Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, emphasized the global recognition of the London Bullion Market Good Delivery Standard as a benchmark for gold trading integrity. She highlighted Nigeria’s adherence to these standards as a testament to its commitment to fostering economic confidence and attracting foreign investment.

“Through the National Gold Purchase Programme, Nigeria joins a select group of nations strengthening their gold reserves, enhancing currency stability, and creating an attractive investment climate,” Shinkafi said.

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