The Federal Government, on Wednesday, reaffirmed its commitment to strengthening Nigeria’s foreign reserves through an innovative gold acquisition programme that eliminates the need for dollar sourcing.

It also noted that the program, which began in August and is being driven by the Solid Minerals Development Fund (SMDF), is designed to use locally mined gold to boost the country’s foreign reserves, thereby reducing pressure on the naira and the demand for foreign currency.

Minister of Solid Minerals Development, Dr Oladele Alake, disclosed this in Abuja at the ongoing 10th edition of the Nigeria Mining Week, emphasised the government’s determination to pursue the gold initiative “with vigor and assiduity,” describing it as one of the most effective strategies to enhance Nigeria’s economic stability.

He said: “This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars to buy gold internationally. Once the gold is acquired, it is added directly to the Central Bank of Nigeria’s (CBN) foreign reserves. It’s one of the fastest ways to reflect growth in our reserves.”

He noted that because the gold is mined locally, there is no need to spend scarce foreign exchange, making it a strategic solution to multiple economic challenges.

He added, “The programme also supports local employment and economic activity, as miners and workers are paid in naira and spend within the local economy,” he stressed.

“In 2025, we are allocating even more funds to this programme. The President has shown strong confidence in its potential by approving substantial budgetary support.”

The minister also hinted at plans to propose a policy that could bar local schools from charging tuition in foreign currency, reinforcing the broader agenda to reduce dollar dependency in the domestic economy.

In her remarks, the Executive Secretary of the Solid Minerals Development Fund (SMDF) Mrs Fatima Shinkafi highlighted key lessons learned from the African Finance Corporation (AFC)-backed mining facility.

She said: “We underestimated the level of unpreparedness and misalignment within the sector. Many jump into mining thinking it’s a quick win, but it’s a serious business that requires serious science, funding, and long-term commitment.”

She emphasised that while SMDF did not require collateral or feasibility studies from applicants, even pre-feasibility was a challenge for many.

She added, “Too often, people are speculating, chasing licenses based on rumors like ‘there’s gold behind my grandfather’s backyard.’ That mindset must shift. Mining goes far beyond artisanal thinking.

“Despite these challenges, Nigeria’s gold sector is bucking global trends. “Exploration funding is rising in Nigeria while it’s declining globally, we’re literally defying gravity.”

Citing global instability, including U.S. China tensions, the war in Ukraine, and conflict in the Middle East, she pointed out that investors are increasingly turning to gold as a safe haven.

“Gold just hit $4,200 per ounce, and institutions like Goldman Sachs and J.P. Morgan are now projecting $5,000. A year ago, that would’ve sounded ridiculous, now it’s very plausible.”

She then admonished participants at the mining week to continue to support the government’s vision of making Nigeria a prime destination for junior miners and exploration investment.

The SMDF Executive Secretary was full of commendations to the Minister of Solid Minerals for pivotal support, describing recent initiatives, reforms, and policies introduced by the Minister as “crucial to the next phase of our growth.”

However, the Miners Association of Nigeria (MAN), through its National Publicity Secretary, Fatai Jimoh, has expressed concern over the rising cost of service fees in the sector.

Jimoh, who spoke with reporters at the 10th edition of the Nigeria Miners’ Week in Abuja, said it is becoming difficult for indigenous miners to keep up, lamenting that the cost of annual service fees has increased significantly over the past year.

He explained that while the mining sector holds great potential, local miners need more support to grow and thrive.