Minister Alake Presents Gold Bar to President Tinubu, Highlights Economic Benefits

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Solid Minerals Development Minister, Dr. Dele Alake, recently presented a gold bar to President Bola Ahmed Tinubu, marking a significant milestone for Nigeria’s solid minerals sector. This event underscores the potential of the National Gold Purchase Program (NGPP) to boost the country's foreign reserves and enhance the value of the naira.

Dr. Alake praised President Tinubu for his support of the reforms in the solid minerals sector. He highlighted that the NGPP would not only increase the nation’s reserves but also strengthen the naira. The gold bar presented was sourced from artisanal and small-scale gold miners and refined by the Solid Minerals Development Fund (SMDF) to meet the London Bullion Market Association Good Delivery Standard.

During the presentation, Alake emphasized the importance of the event, which marked the first commercial transaction under the NGPP. This centralized offtake scheme is supported by a decentralized 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. 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 stated.

The first commercial transaction under the NGPP resulted in an increase of over $5 million in Nigeria’s foreign reserves and involved the refining of more than 70 kilograms of gold to the London Bullion Market Good Delivery Standard. This effort injected approximately NGN6 billion into the rural economy, benefiting local miners and their communities.

President Tinubu commended the Ministry for achieving a major milestone in the administration’s drive to diversify the economy. Displaying the symbolic gold bar, he said, “This is another concrete step towards the diversification process under the Renewed Hope Agenda.”

Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, elaborated on the significance of the London Bullion Market Good Delivery Standard. This globally recognized standard ensures that gold and silver bars meet the stringent requirements necessary for global trade.

“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,” Shinkafi explained.Shinkafi also noted that through the NGPP, Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency. This initiative is expected to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.

The presentation of the gold bar to President Tinubu symbolizes a significant achievement for Nigeria’s solid minerals sector. The National Gold Purchase Program is set to play a crucial role in boosting the country's economic stability, increasing foreign reserves, and supporting the naira. This milestone also highlights the administration's commitment to diversifying Nigeria's economy and enhancing its global economic standing.

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