The Minister of Solid Minerals Development, Dr. Dele Alake, has unveiled plans by the Federal Government to boost Nigeria’s foreign reserves through a gold acquisition programme that relies entirely on locally mined gold, eliminating the need for dollar sourcing.
Speaking at the 10th edition of the Nigeria Mining Week in Abuja, Alake said the initiative aims to strengthen the naira, reduce pressure on foreign exchange demand, and stimulate local economic growth.
“This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars to buy gold internationally,” the minister explained. “Once the gold is acquired, it is added directly to the Central Bank of Nigeria’s foreign reserves. It’s one of the fastest ways to reflect growth in our reserves.”
According to Alake, the programme, which is being implemented through the Solid Minerals Development Fund (SMDF), provides a strategic solution to several economic challenges by leveraging Nigeria’s natural resources for national financial stability.
He added that the move would not only conserve foreign exchange but also support local employment and value creation within the mining sector.
“The programme supports local employment and economic activity, as miners and workers are paid in naira and spend within the local economy,” he noted.
The minister further revealed that the Federal Government has increased budgetary allocation for 2025 to expand the programme’s reach, reflecting President Bola Tinubu’s confidence in its potential to drive sustainable economic recovery.
“The President has shown strong confidence in its potential by approving substantial budgetary support,” Alake said.
The gold acquisition scheme, part of Nigeria’s broader drive to reposition its solid minerals sector, is expected to play a critical role in stabilising the currency, enhancing foreign reserves, and unlocking new streams of domestic revenue.
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