The Federal Government has unveiled an ambitious plan to grow Nigeria’s foreign reserves through gold sourced entirely from local miners a bold initiative aimed at strengthening the naira, conserving foreign exchange, and revitalizing rural economies.
Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this on Wednesday, October 15, 2025, during the “Nigeria Gold Day” session at the ongoing 10th Nigeria Mining Week in Abuja, sponsored by the Solid Minerals Development Fund (SMDF).
According to Alake, the Gold Acquisition Programme, launched in August and managed by SMDF, stands as one of the most strategic fiscal innovations under President Bola Ahmed Tinubu’s administration. The initiative targets three critical objectives reducing pressure on the naira, boosting foreign reserves, and generating massive local employment within the gold value chain.
“This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars to buy gold internationally,” Alake explained. “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 added that because the gold is sourced locally, there is no need to spend foreign exchange. “Miners and workers are paid in naira, which circulates within our economy. It’s a win-win for the government, the miners, and the economy,” he said.
Alake revealed that the Tinubu administration has approved increased funding for the programme in 2025, demonstrating the President’s confidence in its potential to transform Nigeria’s fiscal landscape.
“We are pursuing this initiative with vigor and determination. 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,” he emphasized.
In a broader economic context, the Minister hinted at upcoming policies to reduce dollar dominance in local transactions, including steps to discourage schools and institutions from charging tuition fees in foreign currencies.
“Our goal is clear reduce dollar dependency and restore full confidence in the naira,” he said firmly.
In her remarks, Mrs. Fatima Shinkafi, Executive Secretary of the SMDF, described the gold acquisition programme as a “game-changer,” noting that it is attracting new exploration investments even as global funding for mining declines.
“Exploration funding is rising in Nigeria while it’s falling globally we’re literally defying gravity,” Shinkafi said. “The confidence investors are showing is a direct result of the Minister’s policy direction and the government’s commitment to responsible mining.”
She observed that global geopolitical tensions from the U.S.-China standoff to the wars in Ukraine and the Middle East have driven record demand for gold, pushing prices to historic highs.
“Gold just hit $4,200 per ounce, and analysts now project $5,000. A year ago, that would have sounded impossible now it’s reality,” she noted.
However, Shinkafi cautioned against speculative mining, stressing that the sector requires science, data, and long-term strategy.
“Mining is not luck; it’s science and strategy. We must move away from myths like ‘there’s gold behind my grandfather’s backyard.’ Nigeria has the talent and resources to mine responsibly and profitably,” she said.
She lauded Dr. Alake’s “transformational leadership,” urging investors and stakeholders to rally behind the government’s vision of positioning Nigeria as Africa’s premier destination for responsible gold exploration and investment.
