In addition, the Minister praised President Bola Tinubu for his backing of reforms in the solid minerals industry and guaranteed growth in the nation’s reserves and value of the naira through the National Gold Purchase program.
Nigeria’s refined gold would be sold to the Central Bank of Nigeria, according to Minister of Solid Minerals Development Dr. Dele Alake, in order to increase foreign reserves and satisfy the
Good Delivery Standard of the London Bullion Market Association.
In addition, the Minister praised President Bola Tinubu for his backing of reforms in the solid minerals industry and guaranteed growth in the nation’s reserves and value of the naira through the National Gold Purchase program.
Alake stated, “the refined gold would be sold to the Central Bank of Nigeria to bolster foreign reserves,” while presenting the most recent gold bar, which was obtained from small and artisanal gold miners and refined by the Ministry’s Solid Minerals Development Fund to meet the London Bullion Market Association Good Delivery Level.
Explaining to President Tinubu the significance of the event, he said it marked the first commercial transaction under the National Gold Purchase Program (NGPP), the centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.
According to him, “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 Program to enhance fiscal and monetary stability.”
Alake said the first commercial transaction 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.