The Minister of Solid Minerals Development, Mr. Dele Alake, has announced that the National Gold Purchase Programme (NGPP) will significantly enhance Nigeria’s foreign reserves and strengthen the Naira. This statement was made when he presented a gold bar, refined from artisanal and small-scale miners, to President Bola Tinubu.
Key Highlights:
- 1. First Commercial Transaction:
– The refined gold bar, which meets the London Bullion Market Association Good Delivery Standard, marks the first commercial transaction under the NGPP.
– The Central Bank of Nigeria (CBN) will purchase the gold to bolster the nation’s foreign reserves.
- Economic Impact:
– The transaction has added over $5 million to Nigeria’s foreign reserves.
– Approximately 70 kilograms of locally mined and refined gold were aggregated, injecting about 6 billion Naira into the rural economy.
- Minister’s Statement:
– Mr. Alake emphasized the effectiveness of the NGPP, highlighting its role in enhancing fiscal and monetary stability by using Naira to purchase gold traded in US Dollars.
- 4. President’s Remarks:
– President Tinubu praised the initiative, noting it as a significant step towards economic diversification under the Renewed Hope Agenda.
- 5. Quality Standards:
– Mrs. Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, explained that the gold meets the stringent London Bullion Market Good Delivery Standard, enabling global trade in gold bars.
- 6. Legislative Support:
– A bill for an Act to develop Nigeria’s Gold Reserve Industry has passed the second reading in the Senate. Sponsored by Mrs. Natasha Akpoti, the bill aims to create a robust framework for the exploitation and marketing of Nigeria’s estimated 600,000 tonnes of gold reserves, valued at $45 billion.
Future Prospects:
– The bill is expected to attract both domestic and foreign investors, stimulate job creation, and boost government revenue streams.
The successful implementation of the National Gold Purchase Programme and the passage of supportive legislation are set to fortify Nigeria’s economic landscape by leveraging its substantial gold reserves. This initiative not only aims to stabilize the Naira but also positions Nigeria as a significant player in the global gold market.
