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The Federal Government has spent about N12.5 billion to purchase gold from artisanal and small-scale miners across Nigeria as part of efforts to formalise the sector, reduce smuggling, and strengthen the nation’s foreign reserves through the National Gold Purchase Programme (NGPP).
According to details obtained from the expenditure records of the 1.68 per cent Development of Natural Resources Fund as of September 2025, the funds were released to the Solid Minerals Development Fund (SMDF) to expand ongoing intervention programmes aimed at supporting artisanal miners and scaling up gold acquisition for the national reserves.
The transaction, dated August 25, 2025, and referenced FD/FA/124/VOLXXD(F), was described as part of a presidentially approved intervention to enhance capacity, efficiency, and transparency within Nigeria’s small-scale mining ecosystem.
The document stated, “The transfer represents payment of N12.5bn approved by Mr President for expansion of ongoing intervention programmes implemented by the Solid Minerals Development Fund to increase the capacity and efficiency of artisans and small-scale miners to support the National Gold Purchase Programme under SMDF.”
The allocation is a major step in implementing the National Gold Purchase Programme, which aims to build Nigeria’s gold reserves, strengthen the value of the naira, and reduce dependence on foreign exchange.
At the recently concluded Nigeria Mining Week held in Abuja, the Minister of Solid Minerals Development, Dr. Dele Alake, confirmed that the Federal Government has commenced an innovative gold acquisition scheme that eliminates the need to source dollars for international gold purchases.
Alake said the initiative, driven by the Solid Minerals Development Fund, is designed to purchase locally mined gold directly from artisanal and small-scale miners using naira, which is then added to the Central Bank of Nigeria’s (CBN) foreign reserves.
He explained that the new model supports the Federal Government’s economic diversification and foreign reserve management strategy by ensuring that gold—an internationally recognised store of value—is domestically sourced and retained within the Nigerian economy.
“This initiative allows us to purchase gold from local artisanal miners using naira instead of sourcing dollars to buy gold internationally,” Alake said. “Once the gold is acquired, it is added directly to the Central Bank of Nigeria’s foreign reserves. It’s one of the fastest ways to reflect growth in our reserves.”
He added that the programme would also create jobs and stimulate economic activity at the community level since miners and workers are paid in naira, which they spend within local economies. “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,” he noted.
The NGPP, according to the Ministry, is structured as a centralised gold offtake scheme supported by a decentralised network of cooperatives and artisanal mining groups across Nigeria. It aims to eliminate illegal gold exports, improve traceability, and increase revenue generation from the mining sector.
The Federal Government said the programme is part of its wider plan to formalise artisanal and small-scale mining (ASM) operations, which currently account for a large portion of Nigeria’s gold output but operate largely outside formal financial and regulatory frameworks.
In addition to the N12.5bn released for gold retrieval, the report also revealed that the Solid Minerals Development Fund received monthly allocations from the Natural Resources Development Fund between May and August 2025, totalling N7.38bn. The disbursements included N1.37bn in May, N1.74bn in June, N2.02bn in July, and N2.25bn in August, while the Fund’s account closed with a balance of N132.05bn.
Government officials believe that expanding the gold purchase programme will help boost Nigeria’s non-oil export earnings, support fiscal stability, and position the country as a credible player in the global gold value chain.
Gold, often referred to as a “universal currency,” is widely accepted in international trade and serves as a strong reserve asset for central banks. Nigeria’s plan to grow its gold reserves through local sourcing could therefore reduce pressure on the foreign exchange market and strengthen confidence in the naira.
While the initiative has received positive attention from industry stakeholders, some experts have called for stronger monitoring mechanisms to ensure transparency and accountability in the disbursement and utilisation of funds.
Efforts to obtain updated data on the number of artisanal miners who have benefited from the gold purchase scheme were unsuccessful, as the Head of Corporate Communications at the Solid Minerals Development Fund, Mrs. Idowu Jokpeyibo, did not respond to calls or messages sent to her mobile line as of press time.
The National Gold Purchase Programme remains one of the Federal Government’s flagship initiatives under the Renewed Hope Agenda to harness Nigeria’s solid mineral wealth, create employment, and reduce the economy’s dependence on oil revenue.
