Alake presents Tinubu with gold bars, says industry will boost value of naira

Alake presents Tinubu with gold bars, says industry will boost value of naira

The Minister of Solid Mineral Development, Dr. Dele Alake, has commended President Bola Tinubu for championing reforms in the solid minerals sector, assuring that the National Gold Purchase Programme (NGPP) will boost the country’s reserves and boost the value of the Naira.

In a statement by his Special Media Assistant to the Minister, Segun Tomori, Alake at the weekend, while presenting the latest bullion procured from artisanal and small-scale gold miners and refined to meet the London Bullion Market Association's premium delivery standards by the Solid Minerals Development Fund, an arm of the ministry, said the refined gold would be sold to the Central Bank of Nigeria (CBN) to boost foreign exchange reserves.

Explaining the significance of the event, the Minister said this marks the first commercial transaction under the NGPP, a centralised off-take scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.

He said: “The success of the first commercial transaction is a clear testament to the effectiveness of the National Gold Purchase Programme. The transaction increased the country's foreign exchange reserve assets and demonstrated that using the naira to purchase liquid assets that trade in US dollars, such as gold, is a viable strategy. The transaction also highlighted the potential of the National Gold Purchase Programme to enhance fiscal and monetary stability.”

Alake said the maiden commercial transaction had increased Nigeria’s foreign reserve assets by $5 million, produced over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standards, marked the successful aggregation of locally mined gold and injected about 6 billion naira into the local economy.

Tinubu, who received and unveiled the symbolic gold bar, commended the ministry for achieving a major milestone in his administration’s efforts towards economic diversification.

“This is another concrete step towards the diversification process based on the New Hope Agenda,” the President said.

Fatima Shinkafi, executive director of the Solid Minerals Development Fund, said in her presentation that the London Precious Metals Market's Good Delivery Standard is a globally recognised, rigorous and reliable standard that enables global trading of gold and silver bars.

“Only gold and silver bars that meet our fair delivery criteria will be accepted for settlement of Loco London contracts, where the bullion being traded is physically stored in London,” she said.


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