The National Gold Purchase program has been overhauled by the Federal Government to enhance the country’s reserves and strengthen the value of the Naira.
The Minister of Solid Minerals Development, Henry Dele Alake, brought attention to this policy as he presented the most recent gold bar obtained from artisanal and small gold miners, which had been refined by an agency under the Ministry, to President Bola Ahmed Tinubu in Abuja. Alake praised the President for backing reforms in the solid minerals sector and expressed confidence that the sector would soon enhance the nation’s reserves.
The Solid Minerals Development Fund complies with the London Bullion Market Association Good Delivery Standard, as stated by him.
Alake mentioned that the refined gold will be sold to the Central Bank of Nigeria to enhance foreign reserves.
Alake highlighted the importance of the occasion, noting that it signifies the initial commercial transaction within the National Gold Purchase Program (NGPP), a centralized off-take scheme backed by a decentralized network of artisanal and small-scale miners and cooperatives for aggregation and production.
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.”
Alake reported that the initial commercial transaction resulted in a $5 million boost to Nigeria’s foreign reserve assets, over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standard, and the successful pooling of locally mined gold, injecting approximately NGN6 billion into the rural economy.
Tinubu praised the Ministry for reaching a significant milestone in the government’s efforts to diversify the economy, as symbolized by the bar displayed.
“This is another concrete step towards the diversification process under the Renewed Hope Agenda” the President said.
In her statement, Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, mentioned that the London Bullion Market Gold Delivery Standard is a widely acknowledged, strict, and reliable standard that facilitates worldwide trading 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 stated that Nigeria has become part of a special group of nations that are increasing their gold reserves by buying gold using local currency. This initiative aims to boost economic confidence, stabilize the currency, and attract more foreign investments.
Discover more from Afric Showbiz
Subscribe to get the latest posts sent to your email.
