The Federal Government has injected approximately N12.5 billion into the recovery of gold from artisanal and small-scale miners across Nigeria, as part of a strategic effort to formalize the sector and strengthen the country’s foreign reserves.
The initiative, operating under the National Gold Purchase Programme (NGPP), forms a core component of the Solid Minerals Development Fund’s (SMDF) interventions to scale up productivity and transparency in Nigeria’s gold sector.
According to a document obtained by our correspondent, the disbursement was drawn from the Natural Resources Fund, representing 1.68 per cent of the account dedicated to the development of mineral resources.
The allocation, approved by President Tinubu, is aimed at expanding ongoing programmes that increase the capacity and efficiency of artisanal miners while boosting the nation’s foreign exchange reserves.
“The transfer of N12.5 billion underlines the Federal Government’s commitment to operationalizing the NGPP.
By purchasing gold locally using naira instead of sourcing dollars, we not only strengthen our foreign reserves but also reduce pressure on the naira and encourage local economic activity,” the document stated.
Private Sector Partnership in Mineral Exploration: Key to Growth
Experts note that private sector partnership in mineral exploration is crucial to achieving the objectives of the NGPP.
By involving private investors and cooperatives, the programme ensures that artisanal miners have access to technical support, financial backing, and modern extraction methods.
Such collaboration not only improves productivity but also minimizes environmental risks often associated with small-scale mining.
The Minister of Solid Minerals Development, Dele Alake, highlighted that the NGPP, launched in August 2025, is designed to centralize gold offtake while supporting decentralized mining operations across the country.
The programme’s structure allows miners to sell gold directly to the government in naira, thereby incentivizing compliance, reducing smuggling, and promoting a formalized market for the precious metal.
“This initiative demonstrates how private sector partnership in mineral exploration can drive transparency, create employment opportunities, and enhance national wealth.
Local miners benefit from fair pricing and access to modern equipment, while the nation gains by boosting its foreign reserves,” Alake said during the Nigeria Mining Week conference.
Strengthening Local Economies Through Gold Acquisition
The NGPP has already had a measurable impact on local economies.
Payments made to miners in naira circulate within host communities, stimulating trade, services, and employment.
By integrating private sector expertise in mineral exploration and gold processing, the programme enhances operational efficiency while maintaining sustainable and responsible mining practices.
The allocation of funds from May to August 2025 demonstrates a steady commitment, with monthly disbursements of N1.37bn in May, N1.74bn in June, N2.02bn in July, and N2.25bn in August, totaling N7.38bn.
These funds form part of the broader N12.5bn expenditure aimed at operationalizing the NGPP and supporting artisanal miners nationwide.
Leveraging Innovation and Technology
The success of the programme is also underpinned by the deployment of innovative technologies in the collection, valuation, and secure transfer of gold.
By incorporating modern mineral exploration techniques, the Federal Government and private sector partners can track production, prevent smuggling, and ensure proper reporting of gold quantities for national reserves.
According to Alake, the future of Nigeria’s gold sector relies on private sector partnership in mineral exploration combined with robust governance frameworks.
“This programme is a blueprint for how Nigeria can harness its mineral resources responsibly, balancing profitability, environmental sustainability, and community development,” he said.
Outlook for the Solid Minerals Sector
With over 44 commercially viable minerals across more than 500 locations in Nigeria, the country has vast potential to leverage artisanal and small-scale mining for national economic benefit.
The NGPP, supported by private sector collaboration, positions the solid minerals sector as a key driver of economic diversification.
By providing a structured market for gold and ensuring that local miners are properly compensated, Nigeria is taking significant steps toward reducing reliance on imported gold and foreign exchange.
Experts emphasize that such programmes, backed by private sector partnership in mineral exploration, will accelerate the modernization of the mining sector, attract international investors, and improve overall productivity.
“The NGPP is not just about gold recovery; it is about creating a sustainable mining ecosystem where private sector participation ensures innovation, efficiency, and transparency,” Alake concluded.
As the Federal Government continues to deploy funds and strengthen regulatory oversight, the NGPP serves as a testament to the potential of public-private collaboration in transforming Nigeria’s solid minerals industry, enhancing foreign reserves, and promoting inclusive economic growth.
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