Sure! Here’s a simpler version of the blog post for better understanding:
Nigeria’s Senate is thinking about a new rule to make more gold part of its saving money from 4% to 30%. This is to make the money saved less dependent on the US dollar and more on gold, which is safer.
According to a report by Bloomberg Africa, the rule suggests that the Central Bank should buy all the gold that is mined in Nigeria.
Right now, Nigeria’s savings are $34.8 billion, but only 4% of that is gold. If this rule is passed, the gold miners who work informally will now be under the Central Bank’s control.
A Gold Reserve Authority
The Senate also wants to create a Gold Reserve Authority to manage this gold. This will help organize and keep track of the gold.
They suggest that the Central Bank governor, Yemi Cardoso, should lead a team to decide how to use the gold. This team will work like the Central Bank’s team that manages money policy.
This is to make sure the gold is managed properly and by experts.
$5 million to Nigeria’s foreign reserve assets
In June, Dele Alake, the Minister of Solid Minerals Development, said that selling Nigerian gold added over $5 million to Nigeria’s savings. He said this while showing gold bars to President Bola Tinubu.
Alake also said they plan to buy more gold from local miners to help make the naira stronger against other currencies.
“This first sale of gold has added over $5 million to Nigeria’s savings, refined 70 kilograms of gold to a high standard, and brought in about N6 billion to the rural economy,” Alake said.
What you should know
Nigeria’s savings mostly rely on the US dollar, like many other African countries. For about 10 years, the government has tried to make these savings more stable by adding gold and other valuable metals.
The gold buying program started in 2019 under former President Muhammad Buhari to increase Nigeria’s savings and make the naira stronger.
Note: This version uses simpler language and is structured in a way that should be easier for non-English speakers to understand.