Oredola Adeola
The Federal Government has executed the first commercial transaction under the National Gold Purchase Program (NGPP), having refined over 70 kilograms of gold bars sourced from local artisanal and small-scale miners to the prestigious London Bullion Market Good Delivery Standard, thereby bolstering Nigeria’s foreign reserves by over US$5 million.
Dele Alake, Minister of Solid Minerals, made this known in a statement released on Sunday and obtained by Advisors Reports, on the sideline of his recent presentation of the country’s latest sourced gold bars to President Bola Tinubu.
He confirmed that the gold bars were sourced from artisanal and small gold miners and refined by the Solid Minerals Development Fund, an agency under the Ministry.
According to Alake, the successful aggregation of locally mined gold has led to the injection of around N6 billion into the rural economy.
The Minister emphasised that the National Gold Purchase programme, which aims to increase our country’s reserves and boost the value of the Naira, is making significant progress.
He said, “The bars have met the London Bullion Market Association Good Delivery Standard and will soon be sold to the Central Bank of Nigeria to strengthen our foreign reserves.
“This marks the first commercial transaction under the National Gold Purchase Program (NGPP), which is a centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.
“Furthermore, I am proud to announce that this first commercial transaction has resulted in a substantial increase of over US$5 million in Nigeria’s foreign reserves assets, the refinement of over 70 kilograms of gold to the London Bullion Market Good Delivery Standard,” he said.
President Tinubu in his comment after receiving the gold bars commended the Minister of Solid Minerals for achieving a major milestone in the administration’s drive to diversify the economy.
According to him, “This is another concrete step towards the diversification process under the Renewed Hope Agenda.”
Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, also in her comment revealed that 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 therefore stated that Nigeria has joined a select group of countries bolstering their gold reserves, through the efforts of the National Gold Purchase Program under the Ministry of Solid Minerals Development.
She said, “Nigeria has improved its reserves by purchasing gold in local currency to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.”
