Nigeria’s foreign reserves have received a significant boost following the acquisition of responsibly sourced gold by the Central Bank of Nigeria (CBN) under its Domestic Gold Purchase Programme, bringing the country’s total gold holdings to about $3.5 billion.
The monetary-grade gold, refined to London Bullion Market Association (LBMA) Good Delivery standards, was sourced locally and aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP), a framework designed to formalise Nigeria’s gold sector and integrate artisanal miners into responsible global supply chains.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso disclosed that the Bank purchased the gold in naira, with pricing linked to LBMA international benchmarks.
According to Cardoso, the structure allows Nigeria to strengthen its reserves without deploying foreign currency, thereby preserving foreign exchange while improving the quality and diversification of reserve assets.
He noted that global reserve management strategies are evolving, with many central banks increasing gold holdings as a hedge against inflation and geopolitical uncertainties in the global economy.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold demonstrates the strength of the organisation’s responsible sourcing framework and supply-chain due diligence processes.
She explained that the sourcing framework aligns with international best practices, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles for responsible gold sourcing.
A representative of the World Gold Council, Kurtulus Taskale Diamondopoulos, commended the collaboration between the CBN and SMDF, noting that the NGPP aligns with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She described the partnership—where the CBN serves as the sole off-taker while SMDF manages the fiscal and supply chain framework—as a strong model for countries seeking to formalise and strengthen their gold sectors.
Also speaking, President and Chief Executive Officer of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirmed the institution’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.
He stressed the importance of improved geological data and stronger mineral processing infrastructure to attract investment and enhance gold recovery across the country.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to enhance reserve quality, strengthen macroeconomic stability, reduce external vulnerabilities and position Nigeria’s mineral wealth as a pillar of long-term economic resilience.
