Nigeria has achieved a significant milestone with the sale of raw gold at the London Bullion Market Association, resulting in a $5 million boost to the country’s foreign reserves.
This was disclosed by the Minister of Solid Minerals Development, Dele Alake, who highlighted that over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standard were involved in the transaction.
The sale also facilitated the injection of approximately N6 billion into the rural economy through the aggregation of locally mined gold.
During a weekend presentation to President Bola Tinubu, the minister presented the latest gold bar sourced from artisanal and small-scale miners and refined by the Solid Minerals Development Fund.
According to a statement from the Special Assistant on Media, Segun Tomori, the refined gold is slated for sale to the Central Bank of Nigeria to bolster foreign reserves.
Nigeria is reported to possess about 600,000 tonnes of gold reserves worth approximately $45 billion, spread across several states including Zamfara and Edo.
However, the issue of illegal mining has diverted significant wealth from public resources into private hands.
Former President Muhammadu Buhari had previously declared Zamfara State a ‘no-fly zone’ as part of efforts to combat illegal gold mining.
At the event, Minister Alake commended Tinubu for his support of reforms in the solid minerals sector, emphasizing that the National Gold Purchase Program would enhance the nation’s reserves and strengthen the value of the naira.
Explaining the significance of the occasion, Alake stated, “The successful completion of the first commercial transaction demonstrates the effectiveness of the National Gold Purchase Program. It has bolstered our foreign reserves and validated the strategy of using the Nigerian Naira to acquire a liquid asset like gold, traded in United States Dollars.”
President Tinubu, receiving and showcasing a symbolic gold bar, praised the Ministry for achieving a major milestone in diversifying the economy.
“This is another tangible step towards economic diversification under the Renewed Hope Agenda,” he affirmed.
In her presentation, Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, highlighted the importance of the London Bullion Market Good Delivery Standard, underscoring its role in global gold and silver bar trade.
Shinkafi emphasized, “Through the efforts of the National Gold Purchase Program, Nigeria has joined a select group of nations bolstering their gold reserves by purchasing gold in local currency, fostering economic confidence, currency stability, and creating a more favorable environment for foreign investment.”