The federal government has reaffirmed its commitment to bolstering Nigeria’s foreign reserves through a strategic gold acquisition programme that reduces dependence on the US dollar.

This was disclosed by the Minister of Solid Minerals Development, Dr. Oladele Alake, at the ongoing 10th edition of Nigeria Mining Week in Abuja.

Dr. Alake explained that the initiative is part of the administration’s wider economic diversification agenda. Launched in August and driven by the Solid Minerals Development Fund, the programme aims to leverage locally mined gold to strengthen the nation’s foreign reserves, ease pressure on the naira, and curb the demand for foreign currency.

“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 (CBN) foreign reserves. It’s one of the fastest ways to reflect growth in our reserves,” he said.

Alake said that since the gold is mined locally, there is no need to spend scarce foreign exchange, making the initiative a strategic solution to multiple economic challenges, including strengthening reserves, supporting the naira, and promoting domestic mineral production.

“The programme also supports local employment and economic activity, as miners and workers are paid in naira and spend within the local economy

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

The Minister emphasized the government’s resolve to pursue the gold initiative “with vigour and assiduity,” describing it as one of the most effective strategies to strengthen Nigeria’s economic stability.

He also hinted at plans to introduce a policy that would prevent local schools from charging tuition in foreign currency, further reinforcing the broader effort to curb dollar dependence in the domestic economy.

In her speech, Executive Secretary of the SMDF, Mrs. Fatima Shinkafi, highlighted key insights gained from the African Finance Corporation-supported mining facility.

Shinkafi 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 noted that while SMDF did not require collateral or full feasibility studies from applicants, even pre-feasibility assessments proved challenging for many.