Minister Dele Alake is banking on solid minerals to boost the naira and Nigeria’s reserves and economy.
Eko Hot Blog reports that the Minister of Solid Minerals Development, Dr. Dele Alake, has expressed appreciation to President Bola Ahmed Tinubu for his support of reforms in the solid minerals sector.
The Minister reassured the president that the National Gold Purchase programme would bolster the country’s reserves and strengthen the value of the naira.
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The latest gold bar presented to the president was sourced from artisanal and small gold miners and refined by an agency of the Ministry, the Solid Minerals Development Fund, to meet the London Bullion Market Association Good Delivery Standard.
Alake announced that the refined gold would be sold to the Central Bank of Nigeria (CBN) to enhance foreign reserves.
Explaining the significance of the event to President Tinubu, Alake highlighted that it marked the first commercial transaction under the National Gold Purchase Programme (NGPP), a centralized off-take scheme supported by a decentralized aggregation and production network of artisanal and small-scale miners and cooperatives.
“The successful completion of the first commercial transaction clearly demonstrates the effectiveness of the National Gold Purchase Programme,” he stated.
“It has increased the nation’s foreign reserves assets and shown that utilizing 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 noted that the first commercial transaction resulted in a +US$5 million increase in Nigeria’s foreign reserves assets, over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standard, and successful aggregation of locally mined gold, thereby injecting about N6 billion into the rural economy.
Upon receiving and displaying a symbolic bar, President Tinubu commended the Ministry for reaching a significant milestone in the administration’s efforts to diversify the economy.
“This is another concrete step towards the diversification process under the Renewed Hope Agenda,” the president said.
In her presentation, the Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, said the London Bullion Market Good Delivery Standard is the globally recognised stringent and trusted standard that enables the global trade in gold and silver bars.
“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,” she said.
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Shinkafi said, through the efforts of the National Gold Purchase Program under the Ministry of Solid Minerals Development, Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.
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