Alake presents gold bars to Tinubu, says sector will boost Naira value

The Minister of Solid Minerals Development, Dele Alake, has praised President Bola Tinubu for backing reforms in the solid minerals sector.

He assured that the National Gold Purchase Programme would enhance the country’s reserves and strengthen the value of the naira.

The minister’s assurance was contained in a statement issued by his special assistant on media, Segun Tomori.

During the presentation of the latest gold bar sourced from artisanal and small-scale gold miners, refined by an agency under the ministry called the Solid Minerals Development Fund, Alake highlighted that the refined gold would be sold to the Central Bank of Nigeria (CBN) to bolster foreign reserves.

Alake explained to President Tinubu the significance of the occasion, noting that it marked the inaugural commercial transaction under the National Gold Purchase Program (NGPP).

This programme features a centralized offtake scheme supported by a decentralized aggregation and production network involving artisanal miners and cooperatives.

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

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 rural 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.

“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.

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.