Minister of Solid Minerals Development, Dele Alake, has said the first commercial transaction in the National Gold Purchase Programme (NGPP) has delivered over $5 million increase to Nigeria’s foreign reserves assets.
Alake also stated that 70+ kilograms of gold refined to the London Bullion Market Good Delivery Standard and successful aggregation of locally mined gold has injected about N6 billion into the economy.
He stated this while presenting the latest gold bar sourced from artisanal and small gold miners and refined by an agency of the ministry, the Solid Minerals Development Fund, to meet the London Bullion Market Association Good Delivery Standard to President Bola Tinubu at the weekend.
Alake said the refined gold would be sold to the Central Bank of Nigeria (CBN) to bolster foreign reserves and thanked President Tinubu for supporting solid minerals reforms of the ministry.
Explaining to President Tinubu the significance of the event, Alake said it marked the first commercial transaction under the NGPP, the centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.
He said: “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Programme’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 Programme to enhance fiscal and monetary stability.”
Receiving and displaying a symbolic bar, President Tinubu commended the ministry for achieving a major milestone in the administration’s drive to diversify the economy.
“This is another concrete step towards the diversification process under the ‘Renewed Hope’ agenda,” the president said.
In her presentation, the Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, said 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 said through the efforts of the National Gold Purchase Programme under the Ministry of Solid Minerals Development, Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency to foster economic confidence, enhance currency stability and create a more attractive environment for foreign investment.
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