• Wednesday, July 17, 2024
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Sales of locally sourced gold boost Nigeria’s foreign reserves by $5m — Alake

The minister of solid minerals development, Dele Alake has revealed that more than 70kg of gold sourced in Nigeria have been refined for exports, while over $5 million has been added to the nations foreign assets reserve from the sales of the mineral.

The minister revealed that the transaction 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.

The minister made the revelation when he presented gold bars to President Bola Ahmed Tinubu over the weekend, a statement by Segun Tomori, special assistant on media to the minister said.

Read also: Forging a new frontier: The inaugural Solid Minerals Conference by BusinessDay Newspapers

Presenting the latest gold bar sourced from artisanal and small gold miners and refined by an agency of the Ministry, the Solid Minerals Development Fund, to meet the London Bullion Market Association Good Delivery Standard over the weekend, Alake said the refined gold would be sold to the Central Bank of Nigeria to bolster foreign reserves, the statement read

“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,” Tomori’s statement revealed.

According to the statement Alake who commended President Tinubu for supporting reforms in the solid minerals sector assured that the National Gold Purchase programme will increase the country’s reserve and boost the naira’s value.

He explained to President Tinubu the significance of the event, Alake 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.

“The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness,” he said.

“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.”

The statement added that Tinubu who received and displayed a symbolic bar, 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 statement quoted the president.

In her presentation, the Fatima Shinkafi, the executive secretary of the Solid Minerals Development Fund, 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.

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