The Central Bank of Nigeria (CBN) says its gold reserves have increased to $3.5 billion, following the delivery of “responsibly sourced” gold refined to London Bullion Market Association (LBMA) Good Delivery standards.
In a statement on Wednesday, the apex bank said the gold was sourced locally and acquired under the national gold purchase programme (NGPP) as part of efforts to diversify Nigeria’s foreign reserves.
The development comes amid a sustained rally that has seen gold price surge to over $5,000 per ounce.
The regulator said the gold was aggregated by the solid minerals development fund (SMDF), which involves artisanal and small-scale miners operating 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 workshop on strategies to maximise the economic benefits of minerals in Nigeria, Olayemi Cardoso, governor of the CBN, said the apex bank acquired the monetary-grade gold in naira at prices linked to LBMA benchmarks.
He said the structure was designed to preserve Nigeria’s foreign exchange (FX) holdings while strengthening the nation’s gold reserves.
“By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” the economist said.
Cardoso said global reserve management strategies are shifting amid rising economic uncertainties, with gold regaining prominence as a hedge against inflation and volatility.
The CBN governor added that the domestic gold purchase programme forms part of the CBN’s broader strategy to enhance reserve quality and reduce external vulnerabilities.
Delivery Gold Demonstrates Strength Of Cbn’s Formalisation Framework
On her part, Fatima Umaru, executive secretary of SMDF, said the successful delivery of LBMA-standard gold demonstrates the strength of the organisation’s formalisation framework and supply chain due diligence processes.
Also speaking, Kurtuluş Diamondopoulos, director of central banks and public policy at the World Gold Council, commended the CBN and SMDF for designing the NGPP in line with the 12 London principles for responsible artisanal and small-scale gold sourcing.
She said the partnership between the CBN as sole off-taker and SMDF as fiscal and supply-chain manager offers a model for other countries seeking to formalise gold purchases.
Samaila Zubairu, president and chief executive officer of the Africa Finance Corporation (AFC), reaffirmed the institution’s commitment to financing and formalising Nigeria’s mineral sector.
He stressed the importance of reliable data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.
Also speaking, Nere Emiko, executive vice-chairman of Kian Smith Gold Company, called for greater investment in exploration and transparency, noting that Nigeria’s gold reserve levels remain low relative to peers.
