The Minister of Solid Minerals Development, Dr. Dele Alake, has reaffirmed the federal government’s commitment to strengthening Nigeria’s foreign reserves through an innovative gold acquisition programme that eliminates the need for dollar sourcing.

Alake said this on Wednesday at the ongoing 10th edition of the Nigeria Mining Week in Abuja.

According to the Minister, the programme, which is driven by the Solid Minerals Development Fund (SMDF), is designed to use gold locally mined to boost the country’s foreign reserves.

Alake said the programme, which began in August, will help to grossly reduce the pressure on the Naira and the increasing demand for foreign currency.

According to Alake, “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 added.

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

Highlighting the benefits of the programme, Alake said, “The programme supports local employment and economic activity, as miners and workers are paid in naira and spend within the local economy.

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

He emphasized that President Bola Ahmed Tinubu’s administration is committed and determined to pursue the gold initiative “with vigor and assiduity,” stressing that it is one of the most effective strategies available to enhance Nigeria’s economic stability.

In her presentation at the mining week, the Executive Secretary of the Solid Minerals Development Fund (SMDF), Mrs. Fatima Shinkafi, called for an attitudinal change of stakeholders in the sector, stressing that the mining industry is a huge venture that requires serious planning, high investment, and long-term investment.

“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.

“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.”

Expressing optimism of a bright future for the industry in Nigeria, Shinkafi noted, “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.”

She, however, noted that despite the global instability, including U.S.-China tensions, the war in Ukraine, and conflict in the Middle East, the SMDF boss 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.”

Meanwhile, 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.

“We want to see more participation from local miners, and that means creating a system that supports their efforts and helps them succeed.” (The Nation)