Why Nigeria has no daily gold rate

Nigeria has no daily gold rate like the tola rate of Pakistan or the sarafa board of India. Gold is not traded on a domestic exchange with a published fixing. Dealers quote individually, and the pages that claim a Nigerian price convert the world quote. This page explains why, and what a buyer should ask a dealer to put in writing.

No domestic exchange or association

In Pakistan, a body of gold dealers publishes a daily tola rate. In India, the sarafa markets publish daily rates. Nigeria has no equivalent. There is no Nigerian exchange where gold is traded and no association that publishes a daily naira gold price.

Dealers in Lagos, Kano and Abuja each set their own prices. They start from the world gold price and the dollar rate they use, then add a spread. The result is a range of prices, not a single fixing.

The pages that claim a Nigerian price convert the world quote. They take the world gold price in dollars, multiply it by a naira rate, and present the result as a Nigerian price. That is a derived price, not a fixing. It is useful as a reference, but it is not a rate that any dealer is obliged to honour.

A buyer should treat a derived price as a starting point, not a promise. The actual price will depend on the dealer, the city, and the form of payment.

A buyer should ask a dealer to put in writing the karat tested, the weight, the per-gram rate, and any charge. The karat should be tested in front of the buyer, not taken on trust. The weight should be measured on a calibrated scale.

The per-gram rate should be stated clearly, and any charge for making, wastage or buy-back should be listed. A written quote protects the buyer if a dispute arises later.

The karat stamp on a piece of gold promises a minimum purity, but it is not a guarantee. A 24 karat stamp means the piece is at least 99.9 per cent pure gold. A 22 karat stamp means 91.7 per cent pure, and an 18 karat stamp means 75 per cent pure.

The stamp is a promise by the maker, not a guarantee by any Nigerian authority. A buyer should test the piece or ask the dealer to test it in front of them.

The weight of a piece is measured in grams. A dealer’s scale should be calibrated, and the buyer should see the reading. A piece that weighs less than the dealer claims is worth less. The per-gram rate multiplied by the weight gives the metal value.

A dealer may add a making charge for jewellery, which is the labour cost of turning metal into a piece. The making charge is negotiable and varies by design.

A buyer should compare the written quote with the derived price. The derived price shows the metal value before any spread or charge. The written quote shows the dealer’s actual price. The difference is the dealer’s margin.

If the difference is large, the buyer can ask for a breakdown or seek another dealer. No dealer is obliged to match the derived price, but a written quote makes the comparison possible.