In further fulfilment of the Renewed Hope Agenda of his administration, President Bola Ahmed Tinubu received the latest gold bar sourced from artisanal and small gold miners refined by the Solid Minerals Development Fund (SMDF), an agency of the Federal Ministry of Solid Minerals Development.
The refined gold, designed to meet the London Bullion Market Association Good Delivery Standard, would also be sold to the Central Bank of Nigeria (CBN) to bolster foreign reserves.
Besides, Blueprint reports that the first commercial transaction had delivered +US$5 million increase in Nigerian’s foreign reserves assets, and injected about NGN6 billion into the mining industry.
Receiving the symbolic gold bar weekend from Minister of Solid Minerals Development Dr. Dele Alake, President Tinubu commended the ministry for achieving a major milestone in the administration’s drive to diversify the economy.
“This is another concrete step towards the diversification process under the Renewed Hope Agenda,” Tinubu said.
…Alake speaks on benefits
Presenting the item to the president, the minister lauded the administration’s commitment to reforming the solid minerals sector, assuring that the National Gold Purchase programme will increase the country’s reserve and boost the naira’s value.
On the significance of the event, Alake said it marked the first commercial transaction under the National Gold Purchase Program (NGPP), the centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.
“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,” he said.
Alake further said the first commercial transaction had delivered +US$5 million increase in Nigerian’s foreign reserves assets, 70+ kilograms of gold refined to the London Bullion Market Good Delivery Standard and successful aggregation of locally mined gold thereby injecting about NGN6 billion into the rural economy.
…SMDF boss explains
In her presentation, Executive Secretary SMDF Hajiya Fatimah Shinkafi said the London Bullion Market Good Delivery Standard is the globally recognised stringent and trusted standard that enables the global trade in gold and silver bars.
“Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London,” she said.
Through the efforts of the National Gold Purchase Program under the ministry, she said, “Nigeria has joined a select group of countries bolstering their gold reserves by purchasing gold in local currency to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.”