Posted by Amarachi on Mon 24th Jun, 2024 - tori.ng
According to Alake, the development will boost the naira value and the country’s foreign reserves.
Minister of Solid Minerals Development, Dele Alake, on Sunday, June 24, presented a symbolic gold bar to President Bola Ahmed Tinubu.
According to Alake, the development will boost the naira value and the country’s foreign reserves.
Alake expressed appreciation to President Tinubu for backing reforms in the solid minerals sector, stating that the implementation of the National Gold Purchase program will contribute to enhancing the country’s reserve and strengthening the value of the naira.
The gold sourced from artisanal and small-scale miners and processed by the Solid Minerals Development Fund, an agency of the Ministry, has been upgraded to meet the London Bullion Market Association Good Delivery Standard.
Recently, Alake noted that the refined gold will be supplied to the Central Bank of Nigeria to enhance foreign reserves.
During the event, Alake highlighted to President Tinubu the importance of the occasion, explaining that it represented the inaugural commercial deal within the National Gold Purchase Program (NGPP) which is a centralized system that enables the purchase of gold, backed by a decentralized network involving small-scale miners, cooperatives, and production units.
He said, “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’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 Program to enhance fiscal and monetary stability.”
Alake added that the initial commercial transaction resulted in a +US$5 million boost in Nigeria’s foreign reserve assets, refined over 70 kilograms of gold to meet the London Bullion Market quality standard, and effectively aggregated locally mined gold, infusing approximately NGN6 billion into the rural economy.
President Tinubu expressed appreciation for the Ministry’s accomplishment in advancing the government’s goal of economic diversification by acknowledging and displaying a symbolic bar.