The Central Bank of Nigeria (CBN) said it has taken delivery of responsibly sourced London Bullion Market Association (LBMA) Good Delivery-standard gold into its foreign reserves.
The move which is aimed at strengthening reserve diversification and macroeconomic stability has raised its total gold holdings to $3.5 billion.
According to the apex bank in a statement on Wednesday, the gold was sourced domestically and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP), which works with local miners within a responsible sourcing framework aligned with international due diligence standards.
Speaking at a one-day workshop titled Strategies to Maximise the Economic Benefits of Minerals in Nigeria, CBN Governor Olayemi Cardoso said the apex bank purchased the monetary-grade gold in naira at prices linked to LBMA benchmarks.
“By acquiring domestically refined gold in local currency and without deploying foreign exchange, we can strengthen our reserves while preserving scarce foreign currency.
“This structure enhances reserve accretion and supports our broader macroeconomic stability objectives,” Cardoso said.
He noted that the move comes amid growing global economic uncertainty, prompting central banks worldwide to reassess reserve management strategies.
“Gold has regained prominence as a hedge against inflation and market volatility.
“As geopolitical and financial risks persist, economic resilience, diversification and prudent governance have become imperative,” Cardoso said.
He added that Nigeria’s mineral wealth can only deliver sustainable benefits through coordinated reforms and strict adherence to internationally recognised standards.
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“Institutional credibility depends on strong governance frameworks and transparency across the value chain,” Cardoso said.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, brought together key stakeholders in the gold sector to examine opportunities and challenges across the industry.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold demonstrated the effectiveness of the agency’s formalisation framework and supply chain due diligence processes.
“This milestone reflects the strength of our responsible sourcing model and the growing capacity of Nigeria’s formal gold ecosystem,” Shinkafi said.
Director of Central Banks and Public Policy at the World Gold Council, Ms Kurtulus Taskale Diamondopoulos, commended the CBN and SMDF for aligning the NGPP with the London Principles for responsible artisanal and small-scale gold sourcing.
“The partnership between the CBN as sole off-taker and the SMDF as fiscal and supply chain manager provides a credible model for other countries seeking to develop similar programmes,” she said.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the corporation’s commitment to financing and formalising Nigeria’s mineral sector.
“Improving geological data, investing in mineral processing infrastructure and strengthening environmental standards are critical to attracting long-term investment and enhancing gold recovery,” Zubairu said.
Also speaking, Executive Vice Chairman of Kian Smith Gold Company, Ms Nere Emiko, called for the expansion of Nigeria’s strategic gold reserves and greater use of commodity exchanges.
“Nigeria’s gold reserves remain low relative to peer economies.
“We must invest more aggressively in exploration, transparency and market infrastructure to unlock the sector’s full potential,” Emiko said.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to improve reserve quality, reduce external vulnerabilities and position Nigeria’s mineral resources as a pillar of long-term economic stability.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
