ASHENEWS reports that the federal government has expressed optimism that the National Gold Purchase program will contribute to enhancing the country’s reserve and strengthening the value of the Naira.
The Minister for Solid Minerals Development, Dr. Dele Alake stated this when he presented gold bars to President Bola Tinubu in Abuja.
According to the minister, the mineral sourced from artisanal and small-scale miners is being processed by the Solid Minerals Development Fund, an agency of the Ministry.
Alake added that the initial commercial transaction resulted in a $5 million boost in Nigeria’s foreign reserve assets, refined over 70 kilograms of gold to meet the London Bullion Market quality standard, and effectively aggregated locally mined gold, infusing approximately N6 billion into the rural economy.
To enhance this initiative, he said that the agency has been upgraded to meet the London Bullion Market Association Good Delivery Standard.
Alake further explained that the program, which is a centralised system that enables the purchase is backed by a decentralised network involving small-scale miners, cooperatives, and production units.
“The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness.
“It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy.
“This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability,” the minister said.
On his part, President Tinubu expressed appreciation for the Ministry’s accomplishment in advancing the government’s goal of economic diversification by acknowledging and displaying a symbolic bar.
