Major Gold Sale Announced
President Bola Tinubu celebrated a significant economic milestone as Nigeria successfully sells raw gold on the London Bullion Market Association, injecting $5 million into the economy. Minister of Solid Minerals Development, Dele Alake, disclosed this achievement on Sunday, highlighting the sale of over 70 kilograms of refined gold, which met the London Bullion Market Good Delivery Standard.
Economic Impact
Alake, presenting the refined gold bar to President Tinubu, noted the transaction increased Nigeria’s foreign reserves significantly. He added that it injected approximately N6 billion into the rural economy, benefiting local communities and miners alike. The minister mentioned that the gold would be sold to the Central Bank of Nigeria to bolster reserves further.
Addressing Illegal Mining
Despite Nigeria’s 600,000 tonnes of gold reserves worth an estimated $45 billion, illegal mining remains a significant challenge. This issue diverts resources intended for public benefit into private hands. In response, former President Muhammadu Buhari had declared Zamfara State a ‘no-fly zone’ to combat illegal mining activities.
Supporting Reforms
At the event, Alake praised President Tinubu for his support of reforms in the solid minerals sector. He assured that the National Gold Purchase Programme would continue to increase the country’s reserves and boost the naira’s value, reinforcing economic stability.
First Commercial Transaction
This gold sale marks the first commercial transaction under the National Gold Purchase Programme. Alake emphasized the programme’s success in using the Nigerian naira to purchase a liquid asset traded in US dollars, enhancing fiscal and monetary stability. The sale demonstrates the potential of the programme to significantly contribute to the economy.
Global Standards and Future Prospects
Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, explained the gold met the London Bullion Market Good Delivery Standard.
This achievement places Nigeria among a select group of countries strengthening their gold reserves to foster economic confidence.
Nigeria’s gold reserves aim to attract foreign investment.
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