Since there is high fall in Nigeria Crude oil with the economy falling into recession. The president of Nigeria Muhammed Buhari, represented by Femi Adesina, his spokesman, Buhari made the statement when he was presented with locally mined gold bars by the Presidential Artisanal Gold Mining Development Initiative (PAGMDI).
These developments will also help in improving our foreign reserves by enabling the Central Bank of Nigeria to increase the amount of gold in its reserves,” he said.
“These gold assets which will be purchased in naira, will not only help to bolster our international reserves, it will also provide a hedge against inflation and other economic volatilities associated with foreign currencies that are held in our reserves.
‘‘It has also led to a 40 percent drop in crude oil prices. In Nigeria, the drop in crude oil prices has had a significant impact on government revenue, as well as on our foreign exchange earnings.
“In responding to this challenge, it is therefore paramount that we strengthen our efforts at implementing policies and programs that will enable greater diversification of the Nigerian economy.
“Enabling investment in the Solid Mineral sector, is a key part of the government’s economic diversification program.
“Given our current estimated gold reserves of over 200m ounces, most of which have not been exploited, developing sustainable programmes that will catalyse increased investment in the extraction and refining of gold sourced from mines in Nigeria, is indeed vital.”