New Telegraph

Diversification: FG Sells Locally Refined Gold To CBN

…says transaction earned Nigeria $5 million

In vigorous pursuit of the diversification of the nation’s economy, the Federal Government is set to sell locally refined gold to the Central Bank of Nigeria (CBN) to boost the gold reserve.

This transaction, according to the Minister of Solid Minerals, Dele Alake, would earn the nation $5 million (N6 billion) when concluded.

The Minister disclosed this recently when he presented the latest gold bar sourced from artisanal and small gold miners and refined by an agency of the Ministry, the Solid Minerals Development Fund, to meet the London Bullion Market Association Good Delivery Standard.

The Minister, who commended President Bola Tinubu for supporting reforms in the solid minerals sector, assured that the National Gold Purchase programme would increase the country’s reserve and boost the naira’s value.

Alake said the refined gold would be sold to the Central Bank of Nigeria to bolster foreign reserves.

Explaining the significance of the event to the President, Alake said it marked the first commercial transaction under the National Gold Purchase Program (NGPP), the centralized offtake scheme, supported by a decentralized 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.”

Alake said the first commercial transaction had delivered a +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.

Receiving and displaying a symbolic bar, 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,” the President said.

In her presentation, the Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, said the London Bullion Market Good Delivery Standard was the globally recognized stringent and trusted standard that enabled 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.

Shinkafi said through the efforts of the National Gold Purchase Program under the Ministry of Solid Minerals Development, 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.

Read Previous

New National Anthem: Hirelings Attributing Statements To Me – Obi

Read Next

Business Leaders, Policy Makers To Explore New Investment Opportunities At EU