The Federal Government, through Minister of Solid Minerals Development Dele Alake, has introduced a bold initiative aimed at shoring up Nigeria’s foreign reserves by acquiring locally mined gold which was paid for in naira rather than dollars. The programme, which commenced in August 2025, is part of a broader effort to relieve pressure on Nigeria’s foreign exchange reserves and stabilize the naira. 

Under the plan, known as the National Gold Purchase Programme (NGPP) and managed via the Solid Minerals Development Fund (SMDF), the government will directly purchase gold from artisanal and small-scale miners across Nigeria. This gold will then be refined and added to the Central Bank of Nigeria’s foreign reserves, effectively converting domestic gold output into international value without use of foreign currency. 

A Strategic Move to Reduce Dollar Dependence

Minister Alake has framed the scheme as a critical policy shift. He explained that it removes the need for Nigeria to spend scarce dollars on gold imported from abroad. By sourcing gold domestically and paying in local currency, the initiative is expected to preserve foreign exchange, support the naira, and strengthen reserve holdings. 

He also emphasized the socioeconomic benefits: the miners and workers involved will be paid in naira, which encourages spending within local economies. This is intended to promote inclusive economic activity in mining regions and ensure that value circulates domestically. 

Alake noted that President Bola Tinubu’s administration has approved additional budgetary backing for the programme in 2025, signaling high confidence in its potential. He called for strict regulation, digitization of the gold value chain, and greater accountability to avoid leakages and corruption. 

The Executive Secretary of SMDF, Fatima Shinkafi, meanwhile has urged stakeholders to reassess attitudes toward mining. She warned against speculative and informal practices, noting that responsible mining requires science, regulation, and long-term planning. She also pointed to rising exploration funding in Nigeria — a countertrend in a global environment where mining investments are declining. 

The Miners Association of Nigeria (MAN) has welcomed the concept but also raised concerns. Its leadership urged that costs and regulatory burdens be kept in check so that smaller miners can meaningfully participate. 

As Nigeria rolls out this gold-for-naira programme, observers will be watching whether it can materially strengthen reserves, reduce forex pressures, and deliver inclusive growth without unintended distortions or regulatory loopholes.