The Central Bank of Nigeria (CBN) takes delivery of responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into Nigeria’s foreign reserves, raising total gold holdings to $3.5 billion. The milestone marks a significant step in the apex bank’s reserve diversification strategy and efforts to strengthen macroeconomic stability.
Mediaplusng.com reports that the gold is locally sourced and aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP). The programme integrates artisanal and small-scale miners under a responsible sourcing framework aligned with global best practices, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council London Principles.
Speaking at a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria, CBN Governor Olayemi Cardoso discloses that the apex bank acquires the monetary-grade gold in Naira at prices linked to LBMA benchmarks. He explains that this structure preserves Nigeria’s foreign exchange reserves while strengthening gold holdings, as the transaction does not require deploying scarce foreign currency.
Mediaplusng.com gathers that the governor describes the development as a strategic intervention designed to enhance reserve accretion, reduce external vulnerabilities, and reinforce confidence in Nigeria’s financial system. By purchasing domestically refined gold, the CBN supports local value chains while advancing broader macroeconomic objectives.
Cardoso highlights evolving global reserve management strategies, noting that central banks worldwide are increasing gold holdings amid rising geopolitical tensions and market volatility. He emphasizes that gold is regaining prominence as a hedge against inflation and currency fluctuations, while critical minerals are reshaping global supply chains and industrial competitiveness.
Mediaplusng.com further reports that the workshop—convened by the CBN’s Corporate Secretariat and Reserve Management Departments—serves as a structured engagement platform with stakeholders across the gold value chain. The session aims to deepen collaboration, address sector challenges, and unlock opportunities within Nigeria’s mineral industry.
The CBN Governor stresses that Nigeria’s vast mineral and human resources can only translate into sustainable growth through prudence, long-term planning, and strict adherence to internationally recognised standards. He underscores that institutional credibility depends on transparent governance frameworks and compliance with global best practices.
Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, states that the successful delivery of LBMA-standard gold reflects the strength of Nigeria’s formalisation framework and due diligence systems. She notes that the NGPP demonstrates how structured aggregation and responsible sourcing can integrate local miners into global markets.
Also speaking, Kurtulus Taskale Diamondopoulos of the World Gold Council commends the collaboration between the CBN as sole off-taker and the SMDF as fiscal and supply chain manager. She describes the Nigerian Gold Purchase Programme as a model aligned with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
President and CEO of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirms the corporation’s commitment to financing and formalising Nigeria’s mineral sector. He highlights the importance of reliable geological data, mineral processing infrastructure, and environmental safeguards in attracting investment and improving gold recovery rates.
Meanwhile, Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, underscores the need for Nigeria to build strategic gold reserves comparable to peer economies. She calls for expanded exploration, improved transparency, and stronger integration with commodity exchanges to optimise the nation’s mineral wealth.
Analysts say the Domestic Gold Purchase Programme aligns with the CBN’s broader strategy to enhance the quality of foreign reserves, reduce exposure to external shocks, and position Nigeria’s mineral resources as a pillar of long-term economic stability. By integrating responsible sourcing, local processing, and central bank acquisition, stakeholders believe Nigeria is charting a more sustainable path for reserve diversification and mineral sector growth.
