The Federal Government has announced a bold move to strengthen Nigeria’s foreign reserves through an innovative initiative — Nigeria’s gold acquisition programme — which leverages domestically mined gold instead of foreign exchange to bolster the Central Bank of Nigeria’s (CBN) reserves.
Speaking at the 10th edition of the Nigeria Mining Week in Abuja, the Minister of Solid Minerals Development, Dr. Dele Alake, revealed that the programme is designed to use locally sourced gold to reduce dependence on the U.S. dollar while simultaneously driving economic growth within Nigeria’s mining sector.
“This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars internationally,” Alake explained.
“Once acquired, the gold is added directly to the CBN’s foreign reserves — one of the fastest ways to reflect real growth in our reserves.”
Nigeria’s Gold Acquisition Programme and Forex Stability
The minister described the Nigeria’s gold acquisition programme as a strategic tool to reduce pressure on the naira and mitigate the constant demand for foreign currency.
According to him, the model represents a sustainable way to grow Nigeria’s reserve base while empowering the local mining ecosystem.
He noted that the initiative, coordinated by the Solid Minerals Development Fund (SMDF), creates a cycle of economic activity that benefits communities, miners, and the national economy alike.
“The programme supports local employment and economic activity as miners are paid in naira and spend within the local economy,” Alake said.
“This government has increased funding for this initiative in 2025, demonstrating President Bola Tinubu’s confidence in its potential to drive macroeconomic stability.”
He reiterated that the administration would pursue the gold initiative with “vigour and determination,” describing it as one of the most effective strategies for achieving sustainable economic resilience.
Stakeholders Call for Mindset Shift in Nigeria’s Mining Sector
In her presentation, the Executive Secretary of the Solid Minerals Development Fund (SMDF), Mrs. Fatima Shinkafi, stressed that a key part of ensuring the success of Nigeria’s gold acquisition programme lies in changing perceptions about mining.
She noted that many investors and operators underestimate the complexity of the industry, often mistaking mining for a quick-profit venture.
“We underestimated the level of unpreparedness within the sector,” she said. “Mining is not guesswork — it’s a scientific, capital-intensive, and long-term investment.
Many people jump in thinking it’s a quick win, but it requires serious planning and commitment.”
Shinkafi added that despite the challenges, Nigeria’s gold sector continues to defy global trends, with exploration funding rising locally even as it declines internationally.
“Despite global instability — from U.S.-China tensions to the wars in Ukraine and the Middle East — investors are increasingly turning to gold as a safe haven.
Gold just hit $4,200 per ounce, and major financial institutions like Goldman Sachs now project $5,000. A year ago, that would’ve sounded impossible,” she said.
A Path Toward Economic Independence
Experts at the conference praised the Nigeria’s gold acquisition programme as a groundbreaking policy that could redefine how the country manages its foreign reserves.
By sourcing gold domestically, Nigeria not only cuts its reliance on dollar-based imports but also promotes local productivity.
Shinkafi emphasized that with consistent policy support, Nigeria could become one of Africa’s top destinations for junior miners and exploration investors.
She also commended Minister Alake for his leadership in introducing transformative reforms within the sector, describing them as “crucial to the next phase of Nigeria’s mining growth.”
Miners Call for Reduced Service Fees
Meanwhile, the Miners Association of Nigeria (MAN) has raised concerns about the increasing cost of service fees in the mining sector.
The association’s National Publicity Secretary, Mr. Fatai Jimoh, told reporters at the event that many indigenous miners struggle to stay afloat due to rising operational costs.
“The cost of annual service fees has risen sharply, and it’s becoming difficult for local miners to keep up,” Jimoh lamented.
“The sector holds enormous potential, but local miners need more government support to thrive.”
He appealed for policies that encourage more local participation, urging the government to create a friendlier operating environment that rewards productivity and compliance.
“We want to see more participation from local miners, and that means creating a system that supports their efforts and helps them succeed,” Jimoh added.
A Golden Future for Nigeria
With the success of Nigeria’s gold acquisition programme, experts believe the nation can diversify its revenue sources, protect the naira, and build a stronger, more resilient economy.
The initiative signals a major shift in how Nigeria leverages its natural resources — from exporting raw materials to strategically using them to stabilize its currency and foreign reserves.
As the mining week concluded, there was renewed optimism that with the right leadership, policies, and mindset, Nigeria’s gold acquisition programme could become a cornerstone of the country’s economic transformation.
