Nigeria’s Minister of Solid Minerals Development, Mr Dele Alake, has disclosed that the country plans to hold its foreign reserves in gold, to complement other foreign currencies.
The move, he said, will shore up the value of the Naira and boost the Nigerian economy.
This development comes after a recent surge in the price of gold, which surpassed $4,000 per ounce for the first time in history earlier this month
The Minister spoke in Abuja at the Nigeria Gold Day anchored by the Solid Minerals Development Fund (SMDF) on the last day of the 10th edition of the Nigeria Mining Week.
“This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars to buy gold internationally.
“But you know what gold is? Gold is an international currency. You can change it to anything, any currency. Once acquired, the gold goes straight into the Central Bank of Nigeria’s reserves.
“It’s one of the fastest and smartest ways to grow our foreign reserves. We are going to pursue it with vigour. Because the gold is sourced locally, there is no need to spend foreign exchange. Miners and workers are paid in naira, which circulates within our economy. It’s a win-win for the government, the miners, and the economy. We are pursuing this initiative with vigour and determination,” he stated.
Mr Alake said further that the President understands that real growth comes from production, not importation and with local gold reserves, Nigeria can strengthen its currency, create jobs, and build sustainable wealth.
According to him, there’s no amount of economic calculations that will be faster in terms of shoring up the value of the Naira.
The Minister also expressed confidence that no coming administration will reverse the ongoing reforms plugging loopholes and leakages in the solid minerals sector.
Also speaking at the occasion, the Executive Secretary of the SMDF, Mrs Fatima Umaru Shinkafi, warned against speculative mining practices.
According to her, the sector should be run on data, science, and long-term strategies and commended Mr Alake for transformational leadership in the sector.
On rising global interest in the Nigerian solid minerals sector, she said: “The confidence investors are showing is a direct result of the Minister’s policy direction and the government’s commitment to responsible mining.”