BY NKECHI NAECHE -ESEZOBOR—The Central Bank of Nigeria (CBN) has strengthened its foreign reserves with the acquisition of $3.5 billion worth of gold refined to London Bullion Market Association (LBMA) Good Delivery standards.
Statement released on Wednesday by the apex regulator noted that the gold was sourced domestically through the Solid Minerals Development Fund (SMDF) via the National Gold Purchase Programme (NGPP).
The programme engages local miners and operates under a responsible sourcing framework aligned with Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a recent workshop on maximising the economic benefits of minerals in Nigeria, CBN Governor Olayemi Cardoso explained that the monetary-grade gold was purchased in Naira, with pricing linked to LBMA benchmarks. This approach allows the Bank to strengthen its gold reserves without deploying foreign currency, enhancing reserve accretion and supporting macroeconomic stability.
“By purchasing domestically refined gold, we not only grow our reserves but also promote responsible management of Nigeria’s mineral resources,” Cardoso said. He highlighted the growing global importance of gold as a hedge against inflation and economic volatility, noting that central banks worldwide are prioritising resilience, diversification, and prudent governance amid geopolitical uncertainties.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, provided a platform to engage key stakeholders in the gold sector and deepen understanding of the industry’s opportunities and challenges across the value chain.
Executive Secretary of SMDF, Fatima Shinkafi, said the delivery of LBMA-standard gold demonstrates the strength of Nigeria’s formalisation framework and supply chain due diligence processes.
Commending the initiative, Kurtulus Diamondopoulos of the World Gold Council praised the NGPP for adhering to the twelve London Principles for responsible artisanal and small-scale gold sourcing, describing it as a model other countries could emulate.
The President/CEO of Africa Finance Corporation, Samaila Zubairu, reaffirmed AFC’s support for financing and formalising Nigeria’s mineral sector, stressing the need for accurate data and robust mineral processing infrastructure to attract investment, improve gold recovery, and reduce environmental impact.
Meanwhile, Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, highlighted the urgent need for Nigeria to build strategic gold reserves and leverage commodity exchanges to strengthen the country’s position in global markets.
The Domestic Gold Purchase Programme forms a key part of the CBN’s strategy to enhance reserve quality, reduce external vulnerabilities, and position Nigeria’s mineral wealth as a pillar of long-term economic stability.
