Tinubu celebrates as Nigeria sells gold, injects $5m into economy

He stated that this sale has resulted in a $5 million increase in Nigeria’s foreign reserves, with over 70 kilograms of gold refined to meet the London Bullion Market Good Delivery Standard, and successful aggregation of locally mined gold, injecting approximately N6 billion into the rural economy.

Alake shared this information during the weekend, while presenting the latest gold bar sourced from artisanal and small-scale gold miners, refined by the Solid Minerals Development Fund, to President Bola Tinubu.

The minister mentioned in a statement signed by the Special Assistant on Media, Segun Tomori, that the refined gold will be sold to the Central Bank of Nigeria to strengthen foreign reserves.

Nigeria reportedly possesses around 600,000 tonnes of gold reserves, valued at roughly $45 billion, located in various states including Zamfara and Edo.

Despite this wealth, the rise in illegal mining has led to a significant diversion of national resources into private hands, reducing the resources available for public welfare.

Three years ago, former President Muhammadu Buhari declared Zamfara State a ‘no-fly zone’ to address the issue of illegal gold mining.

Alake commended Tinubu during the event for supporting reforms in the solid minerals industry, noting that the National Gold Purchase programme will enhance the country’s reserve and strengthen the value of the naira.

Alake explained to President Tinubu the importance of the event, stating that it marked the inaugural commercial transaction under the National Gold Purchase Program, a centralized offtake scheme supported by a decentralized aggregation and production network of artisanal and small-scale miners and cooperatives.

The Executive Secretary of the Solid Minerals Development Fund, Fatimah Shinkafi, in her presentation, highlighted the significance of the London Bullion Market Good Delivery Standard, a globally accepted and stringent standard that facilitates the global trade in gold and silver bars.

Shinkafi said, that 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.