President Tinubu receives symbolic gold bar to increase the value of the Naira

Dele Alake, Minister for Solid Minerals Development, President Bola Tinubu with a gold bar from artisanal, small-scale gold mines that has been refined by the Solid Minerals Development Fund to meet the London Bullion Market Association’s Good Delivery Standard.

Alake commended President Tinubu for his support for reforms in the minerals sector and assured that the National Gold Purchase Programme (NGPP) would increase the country’s reserves and increase the value of the naira.

He explained to President Tinubu that the event was the first commercial transaction under the NGPP, a centralised offtake programme supported by a decentralised network of small-scale miners and cooperatives.

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He said: “The successful completion of the first commercial transaction clearly demonstrates the effectiveness of the National Gold Purchase Programme. It has increased the country’s foreign exchange reserves and demonstrated that using the Nigerian Naira to purchase a US dollar-denominated liquid asset such as gold is a viable strategy.”

The first transaction increased Nigeria’s foreign exchange reserves by over US$5 million, refined over 70 kilograms of gold to the London Bullion Market’s Good Delivery Standard and successfully aggregated locally mined gold, pumping approximately NGN6 billion into the rural economy.

Receiving and presenting a symbolic gold bar, President Tinubu commended the ministry for achieving a major milestone in government’s efforts to diversify the economy, saying: “This is another concrete step towards the diversification process under the Renewed Hope Adenda.”

Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, said the London Bullion Market Good Delivery Standard is a globally recognized and trusted benchmark that enables global trading in gold and silver bullion.

“When executing a Loco London contract – where the gold bars traded are physically held in London – only gold and silver bars that meet our Good Delivery standards are accepted,” she explained.

Shinkafi stressed that through the NGPP, Nigeria has joined a select group of countries that are increasing their gold reserves by purchasing gold in their local currency.

This step is intended to boost economic confidence, improve currency stability and create a more attractive environment for foreign investment.

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