Minister of Solid Minerals Development, Dele Alake emphasized that the solid minerals sector and the implementation of the National Gold Purchase Programme will contribute to increasing the country’s reserves and enhancing the value of the naira.
He made these remarks while presenting the latest gold bar, sourced from artisanal and small-scale gold miners and refined by an agency within the Ministry, to President Bola Tinubu.
Alake explained that the refined gold meets the London Bullion Market Association Good Delivery Standard and will be sold to the Central Bank of Nigeria (CBN) to strengthen foreign reserves.
In a statement released on Sunday, the minister highlighted that this production signifies the first commercial transaction under the National Gold Purchase Programme (NGPP). This program is a centralized off-take scheme supported by a decentralized aggregation and production network involving artisanal and small-scale miners and cooperatives.
He said, “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Programme’s effectiveness.
“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 Programme to enhance fiscal and monetary stability.”
Alake said the first commercial transaction has delivered a +US$5 million increase in Nigerian’s foreign reserves assets, 70+ kilograms of gold refined to the London Bullion Market Good Delivery Standard and successful aggregation of locally mined gold thereby injecting about 6 billion naira into the rural economy.
Receiving the symbolic bar, President Tinubu commended the Ministry for achieving a major 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.
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.