Nigeria recently achieved a significant milestone in its economic growth with the successful sales of raw gold at the London Bullion Market Association. The Minister of Solid Minerals Development, Dele Alake, announced that this commercial transaction has resulted in a $5 million increase in the country’s foreign reserves. In addition, it has brought about the refinement of over 70 kilograms of gold to the London Bullion Market Good Delivery Standard, along with the infusion of approximately N6 billion into the rural economy.
During a weekend presentation, Alake presented the latest gold bar, which had been sourced from artisanal and small-scale miners and refined by the Solid Minerals Development Fund, to President Bola Tinubu. It was revealed that the refined gold would be sold to the Central Bank of Nigeria in order to bolster the country’s foreign reserves.
Nigeria is reported to possess approximately 600,000 tonnes of gold reserves, valued at around $45 billion, located in various states such as Zamfara and Edo. However, the prevalence of illegal mining has led to a significant diversion of the nation’s resources into the hands of private individuals, rather than for the common good of the public. In response to this issue, three years ago, former President Muhammadu Buhari declared Zamfara State as a ‘no-fly zone’ to combat illegal gold mining.
At the event, Alake lauded Tinubu for his support of reforms in the solid minerals sector, emphasizing that the National Gold Purchase Programme would not only increase the country’s reserve but also enhance the value of the naira.
Alake explained to President Tinubu the importance of the event, stating that it marked the first commercial transaction under the National Gold Purchase Programme, a centralised off-take scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives. He highlighted the effectiveness of the programme in increasing the nation’s foreign reserves assets and demonstrated the potential to enhance fiscal and monetary stability.
In his response, Tinubu commended the Ministry for achieving a major milestone in the administration’s drive to diversify the economy. This achievement, according to him, represents a concrete step towards the diversification process under the Renewed Hope Agenda.
The Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, stressed the importance of the London Bullion Market Good Delivery Standard, which is recognised as a stringent and trusted standard for global trade in gold and silver bars. She also noted that through the efforts of the National Gold Purchase Programme, 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.