By Ayomide Otitoju
The Central Bank of Nigeria (CBN) has added domestically sourced gold, refined to London Bullion Market Association (LBMA) Good Delivery standards, to its foreign reserves, bringing total gold holdings to $3.5 billion, the apex bank announced. The move marks a significant milestone in the CBN’s strategy to diversify its reserves.
According to a statement, the gold was sourced within Nigeria and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP). The programme engages local miners within a responsible sourcing framework aligned with OECD Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a one-day workshop on strategies to maximise economic benefits from Nigeria’s minerals, CBN Governor Olayemi Cardoso said the bank acquired the monetary-grade gold in Naira at prices linked to LBMA benchmarks. “By purchasing domestically refined gold without using foreign currency, we enhance reserve accretion while supporting broader macroeconomic stability,” Cardoso explained.
He added that the workshop reflects Nigeria’s commitment to the responsible and strategic management of its mineral resources and underscores the nation’s readiness to navigate an evolving global economy marked by volatility and uncertainty.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, aimed to engage key stakeholders in the gold sector and deepen understanding of the industry’s landscape, opportunities, and challenges across its value chain. Cardoso highlighted that gold has regained importance globally as a hedge against inflation, while other critical minerals are shaping supply chains and industrial development.
Hajiya Fatima Umaru Shinkafi, Executive Secretary of SMDF, noted that the successful delivery of LBMA-standard gold demonstrates the robustness of the organisation’s formalisation framework and supply chain due diligence processes.
Kurtulus Taskale Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, praised the NGPP’s design, highlighting its adherence to the twelve London Principles for responsible artisanal and small-scale gold sourcing. She described the CBN–SMDF partnership as a model for other countries aiming to formalise and strengthen mineral programmes.
Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC), reaffirmed the organisation’s commitment to financing and formalising Nigeria’s mineral sector, stressing the need for robust data and mineral processing infrastructure to improve gold recovery, attract investment, and support central bank purchases.
Also, Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, called for strategic gold reserve building and the development of commodity exchanges, citing Nigeria’s low reserves relative to peers and the need for greater investment in exploration and transparency.
The Domestic Gold Purchase Programme forms a key component of the CBN’s broader strategy to improve reserve quality, reduce external vulnerabilities, and leverage Nigeria’s mineral wealth as a pillar of long-term economic stability.
