Dele Alake plans gold-for-naira programme to boost foreign reserves
Minister of Solid Minerals Development, Dele Alake, says the federal government’s National Gold Purchase Programme (NGPP) will bolster Nigeria’s foreign reserves and ease pressure on the naira.
He made the remarks on Wednesday at the Nigeria Gold Day celebration, held during the 10th Nigeria Mining Week in Abuja. The event was themed “Nigeria Mining: From Progress to Global Relevance.”
Alake explained that gold, being a globally recognised asset, presents Nigeria with an opportunity to strengthen its financial position through the NGPP.
The programme, which operates through a centralised offtake mechanism, is supported by a decentralised network of artisanal miners, cooperatives, and small-scale producers.
According to the minister, the initiative will not only enhance the nation’s reserves but also reduce illegal gold exports and increase accountability in the solid minerals sector.
“The philosophy of the programme is simple and effective: we use our local currency, not foreign exchange, to purchase gold, which is then sold to the CBN,” he said.
He explained that while the Central Bank of Nigeria makes payments partly in naira, the acquired gold serves as a foreign asset stored in its vaults.
“That process boosts our foreign reserves and lowers pressure on the naira,” Alake stated.
He added that the Solid Minerals Development Fund (SMDF) is implementing the scheme, with increased funding in the 2025 budget to buy locally mined gold using naira rather than dollars.
“We use our naira and receive naira back from the CBN, but the gold itself becomes a reserve asset for the bank,” he said.
“There is hardly any economic intervention that can strengthen our foreign reserves faster than this gold programme.”
Fatima Shinkafi, executive secretary of the SMDF, noted that despite global declines, investment in gold exploration in Nigeria is on the rise. She urged investors and stakeholders to tap into the country’s growing opportunities in the sector.
Earlier at the event, Minister of Steel Development, Shuaibu Abubakar, revealed that the Nigerian government has opened discussions with China over the possible takeover and revitalisation of the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO).
