Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has conveyed optimism regarding the impact of the National Gold Purchase Programme on the nation’s economy, affirming to President Bola Tinubu its potential to strengthen the country’s reserves and fortify the value of the Naira.
During the unveiling of refined gold bars that align with the London Bullion Market Association Good Delivery Standard, Minister Alake underscored his vision of boosting foreign reserves by selling gold to the Central Bank of Nigeria.
He noted the significance of the programme’s inaugural commercial transaction, stating, “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.”
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Alake pointed to the tangible outcomes of this transaction—a $5 million boost to the foreign reserves and an influx of N6 billion into the formal sector from aggregated locally mined gold.
President Tinubu commended the ministry’s strides towards economic diversification, marking it as a key component of the Renewed Hope Agenda, “This is another concrete step towards the diversification process under the Renewed Hope Agenda,” expressed Tinubu.
Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, also highlighted the global prestige of the London Bullion Market Good Delivery Standard, outlining how it facilitates the international trade of precious metals.
She elaborated, “Only gold and silver bars meeting our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London.”
Through this initiative, Nigeria positions itself among a select group of nations boosting their gold reserves with purchases made in their local currency, which is a tactical move to promote currency stability and draw in foreign investment.
