Nigeria eyes stronger reserves with locally mined gold initiative
The federal government has reiterated its commitment to enhancing Nigeria’s foreign reserves through a strategic program for gold acquisition that aims to minimize reliance on the US dollar.This information was shared by the Minister of Solid Minerals Development, Dr. Oladele Alake, during the ongoing 10th edition of Nigeria Mining Week in Abuja.
Dr. Alake noted that the initiative forms part of the administration's broader economic diversification strategy. Initiated in August and backed by the Solid Minerals Development Fund, this program seeks to utilize locally mined gold to fortify the nation’s foreign reserves, alleviate pressure on the naira, and reduce the demand for foreign currency.
“This initiative enables us to buy gold from local artisanal miners using naira instead of relying on dollars to obtain gold from outside the country.
“Once we acquire the gold, it is added immediately to the Central Bank of Nigeria (CBN) foreign reserves. It represents one of the quickest methods to demonstrate growth in our reserves,” he stated.
Alake mentioned that since the gold is sourced locally, there is no need to expend limited foreign exchange, rendering the initiative a strategic solution to various economic issues, including bolstering reserves, supporting the naira, and fostering domestic mineral production.
“The program also facilitates local employment and stimulates economic activity, as miners and workers are compensated in naira and circulate the funds within the local economy.
“In 2025, we plan to allocate even more resources to this program. The president has shown strong confidence in its potential by endorsing significant budgetary support,” he emphasized.
The Minister underscored the government’s determination to pursue the gold initiative “with vigor and dedication,” calling it one of the most effective strategies for enhancing Nigeria’s economic stability.
He also hinted at the possibility of introducing a policy that would stop local schools from charging tuition fees in foreign currency, further bolstering the overarching effort to diminish dollar dependence within the domestic economy.
In her address, Executive Secretary of the SMDF, Mrs. Fatima Shinkafi, shared important insights gained from the mining facility supported by the African Finance Corporation.
Shinkafi stated, “We underestimated the level of unpreparedness and misalignment in the sector. Many enter mining believing it’s an easy path to success, but it is a serious business that necessitates substantial expertise, funding, and long-term dedication.”
She pointed out that while SMDF did not demand collateral or comprehensive feasibility studies from applicants, even basic pre-feasibility assessments proved difficult for many.
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