The Central Bank of Nigeria has added responsibly sourced gold refined to global standards to Nigeria’s foreign reserves, raising the country’s total gold holdings to about $3.5 billion in a move aimed at strengthening reserve diversification and macroeconomic stability.
The monetary-grade gold, refined to London Bullion Market Association Good Delivery standards, was sourced locally and aggregated through the Solid Minerals Development Fund under the National Gold Purchase Programme.
Officials said the programme integrates Nigerian miners into a responsible sourcing framework designed to meet international standards while improving the contribution of the country’s mineral resources to national economic growth.
Speaking at a workshop focused on strategies to maximise the economic benefits of Nigeria’s minerals, CBN Governor Olayemi Cardoso explained that the apex bank acquired the gold using naira rather than foreign currency. The pricing structure was linked to benchmarks set by the London Bullion Market Association.
According to Cardoso, the approach allows the central bank to strengthen its reserves without deploying scarce foreign exchange, while also supporting long-term macroeconomic stability.
He said the domestic purchase of refined gold helps to increase reserve assets, diversify Nigeria’s holdings and improve resilience against global economic shocks.
The CBN governor noted that central banks across the world are increasingly turning to gold as part of their reserve management strategies in response to geopolitical tensions and financial market volatility. He added that gold continues to serve as an important hedge against inflation and currency instability.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of gold refined to LBMA standards demonstrates the strength of the organisation’s supply chain oversight and formalisation framework for artisanal and small-scale mining operations.
She explained that the programme promotes responsible mining practices while ensuring that local gold production meets international due diligence standards.
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Also speaking at the event, Kurtulus Taskale Diamondopoulos of the World Gold Council commended the collaboration between the Central Bank of Nigeria and the Solid Minerals Development Fund.
She said the National Gold Purchase Programme aligns with the London Principles for responsible artisanal and small-scale gold sourcing and could serve as a model for other countries seeking to formalise their gold sectors.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, also reaffirmed the institution’s commitment to supporting Nigeria’s mineral sector.
Zubairu stressed the need for improved geological data, stronger mineral processing infrastructure and increased investment in the sector to enhance gold recovery and unlock the country’s full mineral potential.
The domestic gold purchase initiative forms part of the Central Bank of Nigeria’s broader strategy to improve the quality of Nigeria’s reserves, reduce external economic vulnerabilities and position the country’s mineral resources as a key pillar of long-term economic stability.
