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Nigeria’s National Gold Purchase Program Boosts Reserves and Naira Value

Boom RadioNG | June 23, 2024

In a significant milestone for Nigeria’s economy, the National Gold Purchase Program (NGPP) has achieved remarkable progress. The program, designed to enhance the country’s reserves and strengthen the value of the naira, recently completed its first commercial transaction. Here are the key highlights:

  1. Foreign Reserves Boost:
    • Nigeria’s foreign reserves received a substantial injection of over US$5 million as a result of this transaction.
    • The gold bars, sourced from artisanal and small-scale miners, were refined to meet the London Bullion Market Association Good Delivery Standard.
    • These refined gold bars will soon be sold to the Central Bank of Nigeria, further bolstering the nation’s foreign reserves.
  2. Aggregation and Rural Impact:
    • The NGPP operates through a centralized off-take scheme, supported by a decentralized network of artisanal and small-scale miners and cooperatives.
    • Locally mined gold was successfully aggregated, injecting approximately NGN6 billion into the rural economy.
    • This initiative not only strengthens Nigeria’s financial position but also contributes to rural development.

Minister of Solid Minerals Mr Dele Alake presents Gold bars to President Bola Tinubu

  1. Currency Stability and Confidence:
    • By purchasing gold in local currency (Naira), Nigeria joins a select group of countries that diversify their reserves.
    • This strategy fosters economic confidence, enhances currency stability, and creates an attractive environment for foreign investment.

Written by Boom RadioNG

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