The Federal Government has announced plans to hold part of Nigeria’s foreign reserves in gold as a strategic move to stabilize the naira and strengthen the economy.
Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this on Wednesday in Abuja during the Nigeria Gold Day event organized by the Solid Minerals Development Fund (SMDF) at the closing of the 10th Nigeria Mining Week.
Dr. Alake explained that the initiative would enable the government to purchase gold from local artisanal miners in naira, rather than spending scarce foreign exchange to buy gold internationally.
“Gold is an international currency; you can exchange it for any other currency. Once acquired, the gold goes straight into the Central Bank of Nigeria’s reserves. It’s one of the fastest and smartest ways to grow our foreign reserves,” he said.
The Minister emphasized that because the gold would be sourced locally, there would be no need to spend foreign exchange, while miners and workers would be paid in naira, keeping wealth circulation within the domestic economy.
“It’s a win-win for the government, the miners, and the economy. The President understands that real growth comes from production, not importation. With local gold reserves, Nigeria can strengthen its currency, create jobs, and build sustainable wealth,” Alake added.
He expressed confidence that future administrations would not reverse the ongoing reforms aimed at plugging leakages and improving transparency in the solid minerals sector.
Speaking at the event, the Executive Secretary of the SMDF, Hajiya Fatima Umaru Shinkafi, cautioned against speculative mining practices, urging that the sector be guided by data, science, and long-term strategies.
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She noted that the growing global interest in Nigeria’s solid minerals industry reflects investor confidence in the Minister’s policy direction and the Federal Government’s commitment to responsible and sustainable mining.
Shinkafi commended Dr. Alake for his transformational leadership, describing his reforms as a turning point in unlocking the nation’s mineral wealth for national prosperity.
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