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Minerals Sector: Gold transaction boosts Nigeria’s foreign reserves by $5m, enhances Naira value ─Alake

President Bola Ahmed Tinubu (middle); Dr. Oladele Alake Minister for Solid Minerals Development (r); and Mrs. Fatimah Shinkafi, Executive Secretary, Solid Minerals Development Fund, During Alake's Presentation of Gold Bar Document to the President, in the State House, Abuja, FCT          Photo: State House

*Dr. Oladele Alake, Minister for Solid Minerals Development, presents 70+ Kg gold bars refined for London Bullion Market Gold delivery standard to President Bola Ahmed Tinubu, assuring the National Gold Purchase programme will increase Nigeria’s reserve and boost the value of the Naira

Isola Moses | ConsumerConnect

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, has commended President Bola Ahmed Tinubu for supporting reforms in the solid minerals sector of the Nigerian economy.

Alake assured the President that the National Gold Purchase programme would increase the country’s reserve and boost the value of the Naira, Nigeria’s currency.

The Minister stated this while presenting the latest gold bar 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 over the weekend.

He disclosed the refined gold would be sold to the Central Bank of Nigeria (CBN) to boost the country’s foreign reserves.

Explaining to President Tinubu the significance of the event, Dr. Alake said it marked the first commercial transaction under the National Gold Purchase Programme (NGPP), the centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.

Segun Tomori,

Special Assistant to the Minister on Media, in a statement Sunday, June 23, 2024, noted Alake said: “The successful completion of the first commercial transaction clearly demonstrates the

National Gold Purchase Program’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.”

He also said: “This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”

The Minister disclosed the first commercial transaction has delivered +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 NGN6 billion into the Nigerian economy.

Receiving and displaying a symbolic bar, President Tinubu commended the Ministry for achieving a major milestone in the administration’s drive to diversify the economy.

The Nigerian leader stated: “This is another concrete step towards the diversification process under the Renewed Hope Agenda.”

In her presentation to the President also, Mrs. Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, said the London Bullion Market Good Delivery Standard remains the globally recognised stringent and trusted standard that enables the global trade in gold and silver bars.

Shinkafi said:

“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 also explained through the efforts of the National Gold Purchase Programme 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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