Nigeria’s foreign reserves have received a boost following the addition of domestically sourced gold, with the total value of the Central Bank of Nigeria’s gold holdings now reaching about $3.5 billion.
The development was announced by the Central Bank of Nigeria (CBN), which confirmed that it had taken delivery of locally sourced gold refined to the internationally recognised London Bullion Market Association Good Delivery standards. The inclusion of the gold in the country’s reserves represents a significant move in the bank’s strategy to diversify Nigeria’s external reserves and reduce dependence on traditional foreign currency assets.
According to a statement from the apex bank, the gold was sourced from within Nigeria and aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme. The initiative works with local miners and operates under a responsible sourcing framework that aligns with international guidelines, including the due diligence standards of the Organisation for Economic Co-operation and Development and the responsible gold sourcing principles promoted by the World Gold Council.
Speaking during a one-day workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, the Governor of the CBN, Olayemi Cardoso, explained that the monetary-grade gold was purchased in naira at prices linked to international benchmarks set by the London Bullion Market Association.
Cardoso said the arrangement allows the central bank to strengthen its gold reserves without using foreign exchange, thereby helping to preserve Nigeria’s external reserves while supporting broader macroeconomic stability.
He noted that acquiring domestically refined gold in local currency represents a strategic approach to reserve management because it allows the country to increase its holdings of valuable assets without placing additional pressure on foreign exchange resources.
The CBN governor also highlighted the changing dynamics of global reserve management, stressing that central banks worldwide are increasingly focusing on diversification as economic uncertainties and geopolitical tensions continue to reshape global markets.
According to him, gold has regained prominence as a reliable store of value and a hedge against inflation and financial volatility. He added that other critical minerals are also becoming increasingly important as they play a growing role in global supply chains and advanced industrial development.
Cardoso described the workshop as part of Nigeria’s broader effort to adopt responsible and strategic management of its natural resources, noting that resilience, diversification and sound governance have become essential in today’s global economic environment.
He said the session, organised by the CBN’s Corporate Secretariat and Reserve Management Departments, provided a platform for engagement with stakeholders in the gold industry while helping to deepen understanding of opportunities and challenges across the sector’s value chain.
The governor emphasised that Nigeria’s vast natural and human resources can only be fully harnessed through careful planning, strong institutional coordination and strict adherence to internationally recognised standards.
He added that maintaining credibility in the global financial system requires strong governance frameworks and transparent processes.
Also speaking at the event, the Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of gold refined to LBMA standards demonstrates the effectiveness of the agency’s framework for formalising gold production and ensuring responsible supply chain practices.
She explained that the programme strengthens oversight of gold sourcing while supporting the participation of artisanal and small-scale miners within a regulated system.
The Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for designing the National Gold Purchase Programme in line with the London Principles for responsible gold sourcing.
She noted that the collaboration between the CBN as the sole off-taker of the gold and the SMDF as the supply chain and fiscal manager offers a practical model that other countries could adopt to strengthen their domestic gold programmes.
Meanwhile, the President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the organisation’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.
He stressed the importance of reliable geological data and the expansion of mineral processing infrastructure to attract investment, improve gold recovery rates, minimise environmental impact and support central bank reserve purchases.
Similarly, the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, highlighted the need for Nigeria to build strategic gold reserves and strengthen the use of commodity exchanges.
He observed that Nigeria’s gold reserves remain relatively low compared with those of many peer countries and called for increased investment in exploration, transparency and sector-wide reforms.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to improve the quality of Nigeria’s reserves, reduce vulnerability to external economic shocks and position the country’s mineral wealth as a long-term pillar of economic stability.
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