The Central Bank of Nigeria (CBN) has taken delivery of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into Nigeria’s foreign reserves.
The development brings the CBN’s total gold holdings to $3.5 billion, marking a significant step in the bank’s strategy to diversify the country’s reserve assets.
In a statement, the apex bank said the gold, sourced within Nigeria, was aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP).
The programme engages local miners and operates 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 one-day workshop on Strategies to Maximise the Economic Benefits of Minerals in Nigeria, CBN Governor Olayemi Cardoso said the bank purchased the monetary-grade gold in naira at prices linked to LBMA benchmarks.
According to him, the structure allows the country to build its gold reserves without deploying foreign exchange, thereby preserving external reserves while strengthening the quality of Nigeria’s reserve assets.
Cardoso noted that the approach supports broader macroeconomic stability and reflects global shifts in reserve management strategies amid rising economic uncertainty.
He described the workshop as part of Nigeria’s commitment to responsible and strategic management of its mineral resources, stressing the need for resilience, diversification, and prudent governance in an evolving global economy.
The CBN governor also emphasised the importance of strict adherence to internationally recognised standards, noting that strong governance frameworks are essential for institutional credibility.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold highlights the effectiveness of the fund’s formalisation framework and supply chain due-diligence processes.
Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Taskale Diamondopoulos, commended the CBN and SMDF for aligning the Nigerian Gold Purchase Programme with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She noted that the partnership, where the CBN serves as the sole off-taker and the SMDF manages fiscal and supply chain operations offers a model for other countries seeking to implement similar programmes.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the corporation’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.
He stressed the need for reliable geological data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact, and support central bank purchases.
Also speaking, Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, emphasised the need for Nigeria to build strategic gold reserves and strengthen commodity exchanges.
Emiko noted that Nigeria’s gold reserves remain relatively low compared with peer economies and called for increased investment in exploration and transparency within the sector.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to enhance the quality of Nigeria’s reserves, reduce external vulnerabilities, and position the country’s mineral wealth as a pillar of long-term economic stability.
