AGS NEWS – Nigeria has made a significant commercial transaction by selling raw gold at the London Bullion Market Association, as disclosed by the Minister of Solid Minerals Development, Dele Alake, on Sunday.

Alake announced that this sale has added $5 million to Nigeria’s foreign reserves.

It involved over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standard and the successful aggregation of locally mined gold, injecting approximately N6 billion into the rural economy.

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The announcement came during Alake’s presentation of the latest gold bar, sourced from artisanal and small gold miners and refined by the Solid Minerals Development Fund, to President Bola Tinubu over the weekend.

Alake stated that the refined gold would be sold to the Central Bank of Nigeria to further bolster foreign reserves.

Nigeria is reported to have about 600,000 tonnes of gold reserves, valued at approximately $45 billion, located in several states, including Zamfara and Edo.

However, illegal mining has led to significant losses, diverting resources intended for public benefit to private hands.

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

At the event, Alake praised Tinubu for supporting reforms in the solid minerals sector and assured that the National Gold Purchase Program would increase the country’s reserves and strengthen the naira.

Alake explained to President Tinubu that this event marked the first commercial transaction under the National Gold Purchase Program, which features a centralized offtake scheme supported by a decentralized network of artisanal and small-scale miners.

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The successful completion of this transaction demonstrates the program’s effectiveness in boosting foreign reserves and enhancing fiscal and monetary stability.

President Tinubu commended the Ministry for achieving a significant milestone in diversifying the economy. “This is another concrete step towards the diversification process under the Renewed Hope Agenda,” the President said.

Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, highlighted that the London Bullion Market Good Delivery Standard is globally recognized, enabling the global trade of gold and silver bars.

She emphasized that Nigeria, through the National Gold Purchase Program, has joined a select group of countries that bolster their gold reserves by purchasing gold in local currency, fostering economic confidence and enhancing currency stability.