Nigeria has successfully conducted a commercial sale of raw gold at the London Bullion Market Association, resulting in a $5 million boost to the country’s foreign reserves.
This achievement was announced by the Minister of Solid Minerals Development, Dele Alake, on Sunday.
Alake reported that the sale involved over 70 kilograms of gold, refined to the London Bullion Market Good Delivery Standard.
The transaction has also injected approximately N6 billion into the rural economy through the aggregation of locally mined gold.
During the weekend, Alake presented the latest refined gold bar, sourced from artisanal and small-scale gold miners, to President Bola Tinubu.
According to a statement by Segun Tomori, the minister’s Special Assistant on Media, the refined gold will be sold to the Central Bank of Nigeria to further bolster foreign reserves.
Nigeria is estimated to have around 600,000 tonnes of gold reserves, worth about $45 billion, primarily located in states like Zamfara and Edo.
However, illegal mining has significantly diverted these resources from public benefit.
Three years ago, former President Muhammadu Buhari declared Zamfara State a ‘no-fly zone’ to combat illegal gold mining activities.
At the event, Alake praised President Tinubu for supporting reforms in the solid minerals sector.
He assured that the National Gold Purchase Programme would increase the country’s reserves and strengthen the value of the naira.
Explaining the significance of the event, Alake noted that this marked the first commercial transaction under the National Gold Purchase Program.
The programme supports a centralised offtake scheme and a decentralised network of artisanal and small-scale miners and cooperatives.
“The successful completion of this transaction demonstrates the effectiveness of the National Gold Purchase Program.
It has increased the nation’s foreign reserves and shown that purchasing a liquid asset traded in US Dollars, such as gold, using the Nigerian Naira is a viable strategy.
This transaction has also highlighted the program’s potential to enhance fiscal and monetary stability,” Alake said.
President Tinubu, upon receiving and displaying a symbolic gold bar, commended the Ministry for achieving a significant milestone in the administration’s efforts to diversify the economy.
“This is another concrete step towards the diversification process under the Renewed Hope Agenda,” the President remarked.
Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, explained that the London Bullion Market Good Delivery Standard is a globally recognised benchmark that facilitates the global trade in gold and silver bars.
Only gold and silver bars meeting this standard are acceptable in the settlement of a Loco London contract, where the bullion is physically held in London.
Shinkafi added that through the National Gold Purchase Program, Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency.
This move is aimed at fostering economic confidence, enhancing currency stability, and creating a more attractive environment for foreign investment.
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