In a significant economic milestone, Nigeria has sold raw gold on the London Bullion Market Association, according to Dele Alake, the Minister of Solid Minerals Development. This transaction has resulted in a $5 million increase in Nigeria's foreign reserves and the refinement of over 70 kilograms of gold to the London Bullion Market Good Delivery Standard, injecting approximately N6 billion into the rural economy.
The announcement was made on Sunday, during a presentation by Minister Alake to President Bola Tinubu, showcasing the latest gold bar refined by the Solid Minerals Development Fund. The refined gold will be sold to the Central Bank of Nigeria to further bolster foreign reserves, as per a statement by Alake’s Special Assistant on Media, Segun Tomori.
Nigeria is estimated to hold around 600,000 tonnes of gold reserves, valued at approximately $45 billion, located in states including Zamfara and Edo. However, illegal mining has diverted significant resources away from public benefit, prompting former president Muhammadu Buhari to declare Zamfara State a ‘no-fly zone’ three years ago to combat the issue.
Minister Alake praised President Tinubu for supporting reforms in the solid minerals sector, highlighting that the National Gold Purchase Program will strengthen Nigeria's reserves and enhance the value of the naira. He emphasized that the first commercial transaction under this program demonstrates its effectiveness, showing that purchasing gold with Nigerian Naira can be a viable strategy for fiscal and monetary stability.
President Tinubu commended the ministry's achievement, stating, "This is another concrete step towards the diversification process under the Renewed Hope Agenda."
Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, noted that the London Bullion Market Good Delivery Standard is a globally recognized benchmark, ensuring the quality and tradeability of gold and silver bars.
She added that through the National Gold Purchase Program, Nigeria has joined an elite group of countries enhancing their gold reserves in local currency, thereby fostering economic confidence, currency stability, and a more attractive environment for foreign investment.
