The Central Bank of Nigeria (CBN) has strengthened the country’s foreign reserves with the addition of $3.5 billion worth of gold, marking a major milestone in its reserve diversification strategy.
The apex bank confirmed that the gold has been refined to the London Bullion Market Association (LBMA) Good Delivery standards and has now been formally included in Nigeria’s reserve portfolio.
According to the CBN, the precious metal was sourced locally and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP).
The programme is designed to formalise artisanal and small-scale mining activities while ensuring compliance with global best practices in responsible sourcing.
Speaking at a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the apex bank acquired the monetary-grade gold in naira at prices linked to international benchmarks set by the London Bullion Market Association.
Cardoso explained that the structure of the transaction allowed the bank to strengthen the nation’s reserves without deploying foreign exchange.
“By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” he said.
The CBN governor noted that global reserve management strategies are shifting amid rising geopolitical tensions and market volatility, with gold increasingly regaining prominence as a hedge against inflation and economic uncertainty.
According to him, the move forms part of Nigeria’s broader strategy to enhance economic resilience, reduce external vulnerabilities, and position the country’s mineral wealth as a key pillar of long-term stability.
Cardoso also called for reforms to unlock Nigeria’s mineral potential, stressing that prudence, coordination and strict adherence to international standards are necessary to sustain institutional credibility.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, said the successful delivery of LBMA-standard gold demonstrates the strength of the agency’s formalisation and supply chain due diligence framework.
Also speaking, the Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Diamondopoulos, commended both the CBN and SMDF for aligning the NGPP with the London Principles for responsible artisanal and small-scale gold sourcing.
She described the partnership between the CBN as sole off-taker and SMDF as supply chain manager as a model that could be replicated by other countries seeking to strengthen domestic gold markets.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, also reaffirmed the corporation’s commitment to supporting Nigeria’s mineral sector.
He emphasised the need for improved geological data, stronger processing infrastructure and robust environmental safeguards to unlock the sector’s full economic potential.
Meanwhile, the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, highlighted the urgent need for Nigeria to build strategic gold reserves and leverage commodity exchanges.
She noted that Nigeria’s gold reserve levels remain relatively low compared to peer economies and called for greater investment in exploration, transparency and value chain development.
The CBN maintained that the Domestic Gold Purchase Programme forms part of its broader strategy to enhance reserve quality, reduce external vulnerabilities and position Nigeria’s mineral resources as a foundation for long-term economic stability.
