Tinubu Receives Gold Bars from Minister, Says Sector Growth Will Bolster Naira

The Minister of Solid Minerals Development, Dele Alake, has praised President Bola Tinubu for supporting reforms in the solid minerals sector. He stated that the National Gold Purchase Programme would enhance the country’s foreign reserves and strengthen the naira.

In a statement issued by his special assistant on media, Segun Tomori, Alake highlighted that the latest gold bar, sourced from artisanal and small-scale miners and refined by the Solid Minerals Development Fund, would be sold to the Central Bank of Nigeria (CBN) to bolster foreign reserves.

Alake explained to President Tinubu that this marked the inaugural commercial transaction under the National Gold Purchase Program (NGPP), which features a centralized offtake scheme supported by a decentralized network involving artisanal miners and cooperatives.

“The successful completion of the first commercial transaction demonstrates the National Gold Purchase Program’s effectiveness. It has increased the nation’s foreign reserves and shown that using the Nigerian Naira to purchase a liquid asset traded in U.S. dollars, such as gold, is a viable strategy. This transaction underscores the potential of the NGPP to enhance fiscal and monetary stability,” Alake said.

He added that the first commercial transaction has delivered a $5 million increase in Nigeria’s foreign reserves, refined over 70 kilograms of gold to the London Bullion Market Good Delivery Standard, and injected about NGN6 billion into the rural economy.

President Tinubu commended the ministry for achieving a significant milestone in the administration’s drive to diversify the economy. “This is another concrete step towards the diversification process under the Renewed Hope Agenda,” the President said.

Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, explained that the London Bullion Market Good Delivery Standard is the globally recognized standard enabling the global trade in gold and silver bars. She noted that through the NGPP, Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency, fostering economic confidence, enhancing currency stability, and creating a more attractive environment for foreign investment.