Nigeria’s Gold Programme to Boost Foreign Reserves, Strengthen Naira – Alake

The Minister of Solid Minerals Development, Mr. Dele Alake, says the National Gold Purchase Programme (NGPP) will significantly boost Nigeria’s foreign reserves and strengthen the naira.

The programme, which is part of the Presidential Artisanal Gold Mining Initiative (PAGMI), creates structured markets for gold produced by artisanal miners through licensed buying centers and aggregators.

According to Alake, who spoke on Wednesday at the Nigeria gold day celebration on the sidelines of the 10th edition of the Nigeria mining week, themed ‘Nigeria Mining: From Progress to Global Relevance’, in Abuja noted that
the NGPP is a game-changer for Nigeria’s economy.

“The philosophy of that programme, how salutary it is, is that, we use our local naira, not foreign exchange, to mop up gold, then sell it to the CBN,” he said.

“The CBN in turn, makes part of the payment in naira but the gold kept in its vault becomes a foreign currency asset.

“The process thereby, increases the value of our foreign reserves and reduces the pressure on the local currency.” Alake emphasized that there is no faster way to shore up Nigeria’s foreign reserves than this programme.

The Solid Minerals Development Fund (SMDF) is driving the programme, with an increased allocation in 2025 to purchase locally mined gold with naira, reducing reliance on dollars.

This move is expected to curb gold smuggling and reposition the solid minerals sector for greater productivity and transparency.

Fatima Shinkafi, the Executive Director of SMDF, noted that gold exploration funding in Nigeria is trending upwards, contrary to global trends.

The NGPP has already shown promising results, with a +US$5 million increase in Nigeria’s foreign reserves assets and 70+ kilograms of gold refined to the London Bullion Market Good Delivery Standard.

The programme is expected to inject about N6 billion into the rural economy and enhance fiscal and monetary stability.

With the NGPP, Nigeria aims to leverage its gold resources to achieve economic stability and become a premier destination for junior miners.