President Bola Tinubu has praised the Ministry of Solid Minerals Development for achieving a significant milestone with the first commercial transaction under the National Gold Purchase Programme (NGPP).
This commendation came as he received gold bars sourced from artisanal and small gold miners from the Minister of Solid Minerals Development, Dr. Dele Alake, on Sunday.
The News Agency of Nigeria (NAN) reports that the gold was refined by the Solid Minerals Development Fund, an agency within the Ministry.
The successful implementation of the NGPP has added $5 million to Nigeria’s foreign reserves and injected approximately N6 billion into the rural economy.
“This is another concrete step towards the diversification process under the Renewed Hope Agenda,” President Tinubu stated, underscoring the importance of the programme in his administration’s economic strategy.
Dr. Alake, presenting a symbolic gold bar to the President, emphasized the broader economic implications of the NGPP. He noted that the programme would enhance the country’s foreign reserves and strengthen the value of the Naira.
“The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Programme’s effectiveness,” Alake said.
“It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in dollars, such as gold, is a viable strategy.”
The minister also highlighted the economic and financial stability that the NGPP promises, pointing out that the over 70 kilograms of gold sold to the London Bullion Market Good Delivery Standard marks a successful aggregation of locally mined gold.
Hajiya Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, noted that the gold met the London Bullion Market Good Delivery Standard, the globally recognized and trusted benchmark in the trade of gold and silver bars.
ADVERTISEMENT
“Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion trade is physically held in London,” she explained.
Shinkafi further elaborated on the broader implications of the NGPP, stating that through this programme, Nigeria has joined other nations in bolstering their gold reserves by purchasing gold in local currency.
This move is expected to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.
