Nigeria Boosts Foreign Reserves with $5M Gold Transaction Under New National Gold Purchase Program

In a landmark achievement, Nigeria has bolstered its foreign reserves by $5 million through the successful completion of the first commercial transaction under the National Gold Purchase Program (NGPP). This initiative, supported by President Bola Tinubu’s administration, saw over 70 kilograms of locally sourced and refined gold meet the London Bullion Market Association Good Delivery Standard.

Dr. Dele Alake, Solid Minerals Development Minister, praised the program, highlighting its potential to stabilize the naira and enhance the rural economy. Presenting the latest gold bar, Alake emphasized that the NGPP’s effectiveness is demonstrated by this initial transaction. He noted that using the Nigerian naira to purchase a liquid asset traded in United States dollars, such as gold, is a viable strategy for boosting the nation’s foreign reserves and ensuring fiscal stability.

“This successful transaction underscores the potential of the National Gold Purchase Program to enhance fiscal and monetary stability,” Alake stated. He also mentioned that this move injected about NGN6 billion into the rural economy through the aggregation of locally mined gold.

President Tinubu, receiving and displaying the symbolic gold bar, lauded the Ministry for achieving a major milestone in the administration’s drive to diversify the economy under the Renewed Hope Agenda. “This is another concrete step towards the diversification process,” he said.

Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, explained the significance of meeting the London Bullion Market Good Delivery Standard, a globally recognized and stringent standard that facilitates global trade in gold and silver bars. She emphasized that only bars meeting these standards are acceptable for settling Loco London contracts.

Through the NGPP, Nigeria joins a select group of countries enhancing their gold reserves by purchasing gold in local currency. This strategy is expected to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.

Report by the Office of the Honourable Minister of Solid Minerals Development.