By Joke Kujenya
NIGERIA’S SOLID Minerals Development Minister, Dr. Dele Alake, has highlighted the pivotal role of the National Gold Purchase Programme (NGPP) in boosting Nigeria’s foreign reserves and strengthening the nation’s currency, the naira.
Commending President Bola Tinubu for his unwavering support in reforming the solid minerals sector at a presentation ceremony, Alake also presented the delivery of refined gold bars from artisanal and small-scale miners, saying it meets the stringent London Bullion Market Association (LBMA) Good Delivery Standard.
These bars, he noted, are refined by the Solid Minerals Development Fund, and are set to be sold to the Central Bank of Nigeria (CBN), thereby enhancing the nation’s foreign reserves.
He stressed that this transaction is the first commercial exchange under the NGPP, which integrates a decentralized network of miners and cooperatives and expressed confidence in the programme’s ability to enhance fiscal stability and monetary confidence through strategic investments in gold.
“This transaction highlights the viability of using the Nigerian naira to purchase gold, a liquid asset traded in US dollars. It signifies a pivotal step towards economic diversification and sustainable growth,” Alake stated.
The event also marked a significant economic milestone, with Alake reporting a notable increase of over $5 million in Nigeria’s foreign reserves and the refinement of over 70 kilograms of gold, adding that the programme has injected approximately N6 billion into the rural economy through the effective aggregation of locally mined gold.
President Tinubu, receiving a symbolic gold bar, praised the Ministry for its achievements in diversifying the economy.
“This is another concrete step towards realizing our Renewed Hope Agenda,” Tinubu said.
Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, also noted the global recognition of the LBMA Good Delivery Standard as a benchmark for gold trading integrity.
She emphasized 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 remarked.
Alake said the NGPP aims to increase Nigeria’s reserves and boost the value of the naira, making significant strides in these areas, saying that the presentation of gold bars to President Tinubu marks a crucial step forward, demonstrating the successful refinement and aggregation of gold from artisanal and small-scale miners.
“This initiative not only strengthens Nigeria’s foreign reserves but also injects substantial economic value into rural communities,” Alake remarked.
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