The Central Bank of Nigeria (CBN) has added responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards to Nigeria’s foreign reserves, bringing the country’s total gold holdings to approximately $3.5 billion.
According to the CBN, the gold was sourced locally within Nigeria and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP).
The initiative was designed to formalise Nigeria’s artisanal and small-scale gold mining sector while enabling the country to leverage its natural resources to support national reserve management.
Speaking during a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso disclosed that the monetary-grade gold was purchased in naira with pricing benchmarked against the LBMA gold price.
The structure allows the apex bank to increase its reserve assets without deploying foreign currency, thereby preserving Nigeria’s foreign exchange while strengthening the composition and quality of external reserves.
The programme supports multiple economic objectives including reserve accretion, macroeconomic stability and enhanced reserve diversification.
By purchasing domestically refined gold rather than importing bullion, the CBN also reinforces the strategic role of Nigeria’s mineral resources in strengthening long-term economic resilience.
Cardoso explained that global reserve management strategies are evolving as central banks increasingly prioritise stability and protection against geopolitical and financial market volatility.
Gold, according to the CBN governor, is widely regarded as a critical hedge against inflation and currency instability, making it an increasingly important asset within central bank reserve portfolios.
Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, stated that the successful delivery of LBMA-standard gold demonstrates the strength of the organisation’s formalisation framework and supply chain due diligence mechanisms.
She noted that the programme integrates local miners into a responsible sourcing structure aligned with international best practices.
The sourcing framework follows global standards including the Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council London Principles for responsible gold sourcing.
Kurtulus Taskale Diamondopoulos of the World Gold Council commended the collaboration between the CBN and the SMDF, noting that the National Gold Purchase Programme aligns with the twelve London Principles designed to promote responsible artisanal and small-scale gold sourcing.
Diamondopoulos said the partnership structure, with the CBN acting as the sole off-taker and the SMDF managing the fiscal and supply chain components, provides a viable model for other countries seeking to formalise and strengthen their gold sectors.
Also speaking at the event, President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the institution’s commitment to financing and supporting the formalisation of Nigeria’s mineral sector.
He emphasised the importance of improving geological data accuracy and expanding mineral processing infrastructure to attract investment and increase gold recovery across the country.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy aimed at enhancing the quality of Nigeria’s external reserves, reducing exposure to global financial shocks and positioning the country’s mineral wealth as a long-term pillar of economic stability.
Analysts note that the integration of domestically sourced gold into the country’s reserve portfolio could also help deepen Nigeria’s solid minerals sector while reducing dependence on oil revenue over time.