Minister Presents Gold To Tinubu, Says Mineral Reforms To Boost Economy  

4 months ago 43

In a significant move towards economic diversification, Minister of Solid Minerals Development, Dele Alake, has presented newly refined gold bars to President Bola Tinubu, emphasising that reforms in the gold sector will bolster Nigeria’s fiscal and monetary stability.

During the presentation at the Presidential Villa in Abuja, Alake showcased gold bars refined to meet the London Bullion Market Association Good Delivery Standard.

The gold bars represented the first commercial transaction under the National Gold Purchase Program (NGPP), an initiative aimed at centralising gold purchases from artisanal and small-scale miners.

Alake highlighted the program’s immediate impact, stating, “This transaction has delivered over $5 million increase in Nigeria’s foreign reserves assets and injected about 6 billion Naira into the rural economy.”

He emphasised that using the Nigerian Naira to purchase gold, a dollar-traded asset, was proving to be a viable strategy for enhancing the country’s economic stability.

The Minister explained that the refined gold would be sold to the Central Bank of Nigeria (CBN), directly contributing to the nation’s foreign reserves.

The move was expected to have a positive effect on the value of the Naira and create a more attractive environment for foreign investment.

President Tinubu, receiving a symbolic gold bar, praised the initiative as “another concrete step towards the diversification process under the Renewed Hope Agenda.”

Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatimah Shinkafi, noted that Nigeria has joined a select group of countries strengthening their gold reserves by purchasing gold in local currency, a strategy aimed at fostering economic confidence and enhancing currency stability.

“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.

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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