BIG STORY

Dele Alake Presents Gold Bars To President Tinubu, Says First Transaction Added $5m To Foreign Reserves

Published

3 months ago

June 24, 2024

Dele Alake, Nigeria’s minister of solid minerals development, has presented refined gold bars to President Bola Ahmed Tinubu, saying the first transaction of the commodity added $5 million to Nigeria’s external reserves.

In a statement on Sunday by Segun Tomori, the minister’s special assistant on media, Alake said the refined gold will be sold to the Central Bank of Nigeria (CBN) to bolster foreign reserves.

According to the statement, the gold bars presented to Tinubu were sourced from artisanal and small gold miners and refined by the Solid Minerals Development Fund (SMDF) to meet the London Bullion Market Association’s good delivery standard over the weekend.

He told the president that the event marked the first commercial transaction under the national gold purchase program (NGPP), a centralised offtake scheme supported by a decentralised aggregation and production network of artisanal and small-scale miners and cooperatives.

Alake said the transaction delivered a $5 million increase in Nigeria’s foreign reserves assets, 70 plus kilograms of gold refined to the London Bullion Market good delivery standard, and a successful aggregation of locally mined gold, thereby injecting about N6 billion into the rural economy.

“The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness,” the minister said.

“It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy.

“This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”

Alake commended Tinubu for supporting reforms in the solid minerals sector, assuring that the NGPP will increase the country’s reserve and boost the naira’s value.

Receiving the gold bars, Tinubu also lauded the ministry for achieving a major milestone in the administration’s drive to diversify the economy.

“This is another concrete step towards the diversification process under the Renewed Hope Agenda” the president said.

In her remarks, Fatimah Shinkafi, executive secretary of the solid minerals development fund, said the London Bullion Market good delivery standard is the globally recognised stringent and trusted standard that enables the global trade in gold and silver bars.

“Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London” she said.

Shinkafi said through the efforts of the NGPP, Nigeria has joined a select group of countries that support their gold reserves by purchasing gold in local currency.

She said the initiative aims to foster economic confidence, enhance currency stability, and create a more attractive environment for foreign investment.

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BIG STORY

Lagos, Ogun Warn Residents As Oyam Dam Plans Water Release

Published

3 hours ago

September 28, 2024

PorscheClassy News

The Lagos and Ogun state governments have warned residents living in flood-prone areas, especially those near riverbanks, to temporarily relocate or prepare for possible flooding due to the planned release of water from the Oyan dam.

The release, managed by the Ogun-Oshun River Basin Development Authority (OORBDA), is an annual process to regulate dam levels during the rainy season.

Last year, flooding caused by water release from the dam affected residents of Isheri Riverview Estate and surrounding areas.

To prevent a similar situation, both state governments have advised communities in low-lying areas to take precautions, including moving to safer locations, as the release could cause rivers to overflow and result in severe flooding.

The Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab, confirmed that advocacy efforts were underway, urging people in vulnerable areas like Ajilete and Owode-Onirin to relocate.

The Ogun State Commissioner for Environment, Ola Oresanya, noted that the dam’s water release volume would be increased to create more reservoir space.

However, OORBDA assured the public that the release would not cause flooding, and the dam has undergone regular maintenance to prevent any failures.

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BIG STORY

Federal Government Declares October 1 As Public Holiday In Celebration Of Independence Day

Published

6 hours ago

September 28, 2024

PorscheClassy News

The Federal Government of Nigeria has declared Tuesday, October 1, 2024, as a public holiday to commemorate the country’s 64th Independence Day celebration.

This announcement was made by the Minister of Interior, Dr. Olubunmi Tunji-Ojo, who congratulated Nigerians both at home and abroad on this historic occasion.

Dr. Tunji-Ojo commended the resilience and hard work of Nigerians, emphasizing that their sacrifices will not go unnoticed.

He encouraged citizens to reflect on the enduring efforts of the nation’s founding heroes, reminding them that the dream of a prosperous and united Nigeria can only be realized through collective action and national unity.

He also “reiterated the need for Nigerians to reflect on the labour of our heroes past and be inspired for the tasks ahead, realising that a Nigeria of our dream can only be built when we unite”.

“While wishing Nigerians a Happy Independence Day Anniversary, Dr. Tunji- Ojo urged the citizens to continue to be steadfast in nation-building,” the statement reads.

The federal government had announced that this year’s Independence Day anniversary will be a “low-key event” due to the economic hardship and spiralling inflation bedevilling millions of households.

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BIG STORY

Naira Depreciates To N1,700/$ At Parallel Market, Lowest Level In Seven Months

Published

6 hours ago

September 28, 2024

PorscheClassy News

The Nigerian naira experienced a significant decline in value on Friday, depreciating to N1,700 per dollar at the parallel section of the foreign exchange market.

By the close of trading, the naira had depreciated by 1.49 percent compared to its value of N1,675 per dollar on Thursday.

Notably, this rate of N1,700 per dollar represents the lowest value the naira has recorded since February 19, when it previously reached a low of N1,730 per dollar.

In Lagos, currency traders, also known as street traders, quoted the buying rate of the local currency at N1,680 per dollar and the selling rate at N1,700 per dollar, resulting in a profit margin of N20.

Meanwhile, at the official foreign exchange window, the local currency appreciated by 2.24 percent, rising from N1,576.1 per dollar on Thursday to trade at N1,540.78 per dollar on Friday.

According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as N1,691 and at a low rate of N1,530 during trading hours.

At the parallel market on Monday, the naira depreciated to N1,665/$ from N1,663 on September 20.

Maintaining the depreciation streak, the local currency fell further to N1,670 and N1,680 on Tuesday and Wednesday, respectively.

However, the naira rebounded to N1,675 on Thursday.

At the official FX market, the local currency depreciated to N1,562.66 on Monday — from N1,541.52 on September 20.

Subsequently, the naira further depreciated to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before appreciating to N1,576.1 on Thursday.

On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.

The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.

On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.

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