Nigeria unveils a gold acquisition plan that channels locally mined gold into its foreign reserves, aiming to ease pressure on the naira and curb dollar demand.
Nigeria’s government has announced a new strategy to strengthen its foreign reserves by purchasing locally mined gold, a move officials say will reduce the country’s dependence on the U.S. dollar and stabilize the naira.
The initiative, launched in August under the supervision of the Solid Minerals Development Fund (SMDF), allows the government to acquire gold from local miners using the naira rather than foreign currency. Once purchased, the gold is deposited directly into the Central Bank of Nigeria’s (CBN) foreign reserves.
Minister of Solid Minerals Development, Dr. Oladele Alake, revealed the plan during the 10th edition of the Nigeria Mining Week in Abuja, which took place between October 13 to 15, 2025. He described the program as “one of the most effective and immediate strategies” to reflect real growth in the country’s reserves.
“This initiative allows us to purchase gold from local artisanal miners using naira instead of sourcing dollars internationally,” Alake said. “It’s one of the fastest ways to boost our reserves while strengthening local economic activity.”
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He added that the initiative would also create jobs, stimulate spending in local communities, and help reduce Nigeria’s heavy reliance on foreign exchange for essential transactions. “The President has shown strong confidence in this program by approving substantial budgetary support for 2025,” Alake noted.
The minister also disclosed that the government is considering a new policy that would prevent local educational institutions from charging tuition fees in foreign currency — part of a broader effort to promote the use of the naira.
Mrs. Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund (SMDF), said the mining sector is undergoing a major shift, driven by reforms and rising investor interest. She admitted that the industry had struggled with a lack of preparedness and technical expertise but said progress was being made.
“Despite the challenges, Nigeria’s gold sector is defying global trends,” she said. “While exploration funding is falling worldwide, it’s increasing in Nigeria — we’re literally defying gravity.”
She cited global tensions — including U.S.-China trade frictions, the war in Ukraine, and unrest in the Middle East — as reasons investors are turning to gold as a safe haven. With prices now exceeding $4,200 per ounce and analysts predicting a rise to $5,000, she said Nigeria’s timing was ideal.
Meanwhile, the Miners Association of Nigeria (MAN) urged the government to address rising service fees that are straining local operators, warning that sustained support is vital to unlocking the sector’s full potential.
