FG Spends ₦12.5bn to Recover Gold from Artisanal Miners, Boost Foreign Reserves and Strengthen Naira
The Federal Government has disbursed about ₦12.5 billion to recover gold from artisanal and small-scale miners across the country as part of efforts to formalise the mining sector and strengthen Nigeria’s foreign reserves. The initiative, executed under the National Gold Purchase Programme (NGPP), is also designed to stabilise the naira and reduce the nation’s reliance on foreign exchange. According to documents from the Natural Resources Fund, the expenditure reflects allocations up to September 2025 and underscores the government’s renewed focus on the solid minerals sector as a viable economic driver.
The fund transfer, referenced FD/FA/124/VOLXXD(F) and dated August 25, 2025, forms part of ongoing intervention programmes implemented by the Solid Minerals Development Fund (SMDF). The payment, approved by President Bola Tinubu, aims to enhance the capacity and efficiency of small-scale miners under the NGPP. According to the fund’s statement, the ₦12.5bn payment expands existing programmes to boost productivity among artisanal miners while ensuring that gold purchased locally feeds directly into the nation’s reserves through the Central Bank of Nigeria (CBN).
Speaking at the recently concluded Nigeria Mining Week, the Minister of Solid Minerals Development, Dele Alake, confirmed that the government has launched an innovative gold acquisition strategy that eliminates the need to source dollars for gold purchases. “This initiative allows us to buy gold from local artisanal miners using naira instead of foreign currency,” Alake said. “Once acquired, the gold is added directly to the Central Bank’s reserves — one of the fastest ways to strengthen the naira and reflect growth in our foreign assets.”
Alake further noted that the programme is designed to create local employment and stimulate rural economies, as miners and workers are paid in naira and reinvest their earnings within local communities. He added that the scheme would also help curb illegal gold smuggling while promoting transparency and accountability in Nigeria’s solid minerals sector. The NGPP, according to the minister, operates as a centralised offtake system supported by a decentralised network of artisanal cooperatives and aggregators nationwide.
Documents also show that the SMDF received monthly allocations from the Natural Resources Development Fund — ₦1.37bn in May, ₦1.74bn in June, ₦2.02bn in July, and ₦2.25bn in August — totalling ₦7.38bn. The account reportedly closed with a balance of ₦132.05bn as of September. While government sources confirmed increased funding for 2025, efforts to obtain data on the number of miners who have directly benefited from the scheme were unsuccessful, as officials of the SMDF could not be reached for comment.
source: punch