The Central Bank of Nigeria has received responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into Nigeria’s foreign reserves.
This milestone brings the Bank’s total gold holdings to $3.5 billion, marking a significant step in Nigeria’s reserve diversification strategy.
CBN in a post on its official X handle @cenbank indicated that gold was sourced locally in Nigeria and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP) which integrates local miners into a responsible sourcing framework aligned with global standards.
It said the sourcing framework aligns with international best practices, including the Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council London Principles for responsible gold sourcing.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s minerals, CBN Governor Olayemi Cardoso disclosed that the Bank acquired the monetary-grade gold in Naira, with pricing linked to LBMA benchmarks.
This structure helps preserve Nigeria’s foreign
By purchasing domestically refined gold without deploying foreign currency, the transaction supports:
- Reserve accretion
- Macroeconomic stability
- Stronger reserve diversification It also reinforces the strategic role of Nigeria’s mineral resources in economic resilience.
Mr. Olayemi Cardoso noted that global reserve management strategies are evolving, with central banks prioritising resilience amid geopolitical and market uncertainties. Gold is increasingly viewed as a critical hedge against inflation and volatility in the global economy.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, noted that the successful delivery of LBMA-standard gold reflects the strength of the organisation’s formalisation framework and supply chain due diligence processes.
Kurtulus Taskale Diamondopoulos of the World Gold Council commended the collaboration between CBN and SMDF, noting that the NGPP aligns with the twelve London Principles for responsible artisanal and small-scale gold sourcing. She highlighted the partnership between the CBN as sole off-taker and the SMDF as fiscal and supply chain manager as a strong model for countries seeking to formalise and strengthen their gold sectors.
President & CEO of the Africa Finance Corporation, Samaila Zubairu, reaffirmed AFC’s commitment to financing and formalising Nigeria’s mineral sector. He stressed the need for accurate data and stronger mineral processing infrastructure to attract investment and improve gold recovery.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to:
- Enhance reserve quality
- Reduce external vulnerabilities
- Position Nigeria’s mineral wealth as a pillar of long-term economic stability.
