Nigerian Government revamps National Gold Purchase Program

The Federal Government has revitalized the National Gold Purchase Programme to enhance the country’s reserves and strengthen the value of the Naira.

This development was highlighted when Dele Alake, the Minister of Solid Minerals Development, presented a newly refined gold bar from artisanal and small-scale miners to President Bola Tinubu in Abuja.

Alake praised President Tinubu for his support of reforms in the solid minerals sector and assured that the sector would soon significantly boost the nation’s reserves. He noted that the Solid Minerals Development Fund adheres to the London Bullion Market Association’s Good Delivery Standard. The refined gold will be sold to the Central Bank of Nigeria to enhance foreign reserves.

Alake emphasized the importance of the event, marking the first commercial transaction under the National Gold Purchase Program (NGPP). This centralized off-take scheme, supported by a decentralized network of artisanal and small-scale miners, demonstrates the NGPP’s effectiveness by increasing the nation’s foreign reserves and proving that purchasing gold with Nigerian Naira is a viable strategy.

This first transaction added over $5 million to Nigeria’s foreign reserves, refined 70+ kilograms of gold to the London Bullion Market Good Delivery Standard, and injected approximately NGN6 billion into the rural economy.

President Tinubu commended the Ministry for this achievement, highlighting it as a significant milestone in the administration’s economic diversification efforts under the Renewed Hope Agenda.

Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, explained that the London Bullion Market Gold Delivery Standard is globally recognized for enabling the trade of gold and silver bars. Through the National Gold Purchase Program, Nigeria has joined a select group of countries increasing their gold reserves in local currency to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.