The Federal Government has spent about N12.5bn to retrieve gold from artisanal and small-scale miners across the country as part of efforts to formalise the sector and boost Nigeria’s foreign reserves through the National Gold Purchase Programme.
This is according to the detailed spending of the 1.68 per cent development of the Natural Resources Fund account obtained by our correspondent on Sunday.
The initiative is expected to strengthen the value of the naira and reduce dependence on foreign exchange.
The expenditure is as of September 2025.
The transaction dated August 25, 2025, and referenced as FD/FA/124/VOLXXD(F), forms a component of the ongoing intervention schemes implemented by the Solid Minerals Development Fund to scale up capacity and efficiency within the artisanal mining sector and support the National Gold Purchase Programme.
The narration read, “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 of N12.5bn by the Federal Government to retrieve gold from artisanal miners represents a tangible step in operationalising the National Gold Purchase Programme and aligns with the minister’s vision of leveraging locally sourced gold to bolster foreign reserves and strengthen the naira.
At the just-concluded Nigeria Mining Week, the Minister of Solid Minerals Development, Dele Alake, confirmed that the government has started an innovative gold acquisition programme that eliminates the need for dollar sourcing.
He also noted that the programme, which began in August, is being driven by the SMDF and is designed to use locally mined gold to boost the country’s foreign reserves, thereby reducing pressure on the naira and the demand for foreign currency.
Gold is an international currency acceptable for various exchanges.
The NGPP is a centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.
Alake explained the programme will also curb gold smuggling and reposition the solid minerals sector for greater productivity and transparency.
He said, “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’s foreign reserves. It’s one of the fastest ways to reflect growth in our reserves.”
He added, “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 programme. The President has shown strong confidence in its potential by approving substantial budgetary support.”
The document also revealed a monthly 10 per cent allocation from the Natural Resources Development Fund, approved by the President, to the SMDF.
The payment covered allocations for the months of May to August 2025. During the period, the Solid Minerals Development Fund received monthly distributions of N1.37bn in May, N1.74bn in June, N2.02bn in July, and N2.25bn in August, making a total of N7.38bn.
The account closed with a balance of N132.05bn.
Efforts to obtain the number of artisanal miners who have benefited from the programme were unsuccessful on Sunday, as the Head of Corporate Communications, Idowu Jokpeyibo, did not respond to calls or messages sent to her mobile line.
