By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has taken delivery of responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into its foreign reserves, raising its total gold holdings to 3.5 billion dollars in a major push to diversify the nation’s reserve assets.
In a statement issued on Wednesday, the apex bank said the milestone marks a significant step in its reserve diversification strategy and underscores Nigeria’s commitment to strengthening macroeconomic stability.
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The gold, sourced locally, was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP).
The programme works with local miners and operates within a responsible sourcing framework aligned with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a recent workshop on strategies to maximise the economic benefits of minerals in Nigeria, the CBN Governor, Olayemi Cardoso, said the monetary-grade gold was acquired in naira at pricing linked to LBMA benchmarks.
According to him, the structure was designed to preserve Nigeria’s foreign exchange holdings while strengthening the country’s gold reserves.
“By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” Cardoso said.
He noted that central banks globally were adjusting their reserve management strategies amid rising geopolitical and market uncertainties, with gold regaining prominence as a hedge against inflation and volatility.
He added that critical minerals were increasingly shaping global supply chains and advanced industrial development.
Cardoso described the development as a reflection of Nigeria’s shared commitment to the responsible and strategic management of its mineral resources.
He stressed the need for strict adherence to internationally recognised standards, adding that institutional credibility depends on strong governance frameworks.
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The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, aimed to deepen engagement with stakeholders across the gold value chain and improve understanding of opportunities and challenges within the sector.
The Executive Secretary of SMDF, Fatima Shinkafi, said the successful delivery of LBMA-standard gold demonstrated the strength of the agency’s formalisation framework and supply chain due diligence processes.
Also speaking, the Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Diamondopoulos, commended both the CBN and SMDF for designing the NGPP in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She described the partnership between the CBN as sole off-taker and SMDF as fiscal and supply chain manager as a potential model for other countries.
The 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.
He emphasised the importance of reliable data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.
Similarly, the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for urgent steps to build strategic gold reserves and leverage commodity exchanges, noting that Nigeria’s reserve levels remain low relative to peers.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to enhance reserve quality, reduce external vulnerabilities and position Nigeria’s mineral wealth as a pillar of long-term economic stability.
