The presentation last week of refined gold bars to President Bola Ahmed Tinubu by the Minister of Solid Minerals Development, Dr Dele Alake, marks a watershed in the efforts to diversify Nigeria’s economy from oil dependency.
The presentation of the latest gold bars 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 was, indeed, a fulfilment of the Renewed Hope Agenda of the Tinubu administration.
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, the first commercial transaction had delivered +US$5 million increase in Nigerians foreign reserves assets, and injected about N6 billion into the mining industry.
Receiving the symbolic gold bar from the minister, 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.
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 value of the naira.
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 stated that the first commercial transaction had delivered +US$5 million increase in Nigeria’s foreign reserves assets, 70+ kilogrammes of gold refined to the London Bullion Market Good Delivery Standard and successful aggregation of locally mined gold thereby injecting about N6 billion into the rural economy.
In her presentation, Executive Secretary of 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.”
Blueprint is, no doubt, excited by this breakthrough in the nation’s diversification drive engendered by Mr President and efficiently delivered by Dr Dele Alake. We, however, urge the Tinubu government not to rest on its oars at ensuring the full diversification of other key economic sectors like agriculture and steel.
