The Central Bank of Nigeria, CBN, has added responsibly sourced, monetary-grade gold to London Bullion Market Association, LBMA, raising its total gold holdings to about $3.5 billion.
The milestone represents a significant step in Nigeria’s strategy to diversify its external reserves and strengthen macroeconomic stability.
The apex bank disclosed this in a series of posts on its official X handle, @cenbank, on Thursday.
According to the CBN, the gold was sourced locally and aggregated by the Solid Minerals Development Fund, SMDF, under the National Gold Purchase Programme, NGPP.
The programme integrates local miners into a responsible sourcing framework that aligns with global standards.
The framework follows 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.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso said the bank acquired the monetary-grade gold in naira, with pricing benchmarked to LBMA standards.
He explained that the arrangement helps conserve Nigeria’s foreign exchange while strengthening the country’s reserve position.
By purchasing domestically refined gold without deploying foreign currency, the transaction supports reserve accretion, enhances macroeconomic stability and deepens reserve diversification, while also underscoring the strategic importance of Nigeria’s mineral resources in building economic resilience.
Cardoso noted that global reserve management strategies are evolving, with many central banks prioritising resilience in the face of geopolitical tensions and market uncertainties.
“Gold is increasingly viewed as a critical hedge against inflation and volatility in the global economy,” he said.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold reflects the strength of the organisation’s formalisation framework and supply-chain due diligence processes.
Similarly, Kurtulus Taskale Diamondopoulos of the World Gold Council commended the collaboration between the CBN and SMDF, noting that the NGPP aligns with the twelve London Principles guiding responsible artisanal and small-scale gold sourcing.
She described the partnership, where the CBN serves as the sole off-taker and the SMDF acts as fiscal and supply-chain manager, as a viable model for countries seeking to formalise and strengthen their gold sectors.
President and Chief Executive Officer of the Africa Finance Corporation, AFC, Samaila Zubairu, also reaffirmed the organisation’s commitment to supporting the financing and formalisation of Nigeria’s mineral sector.
He emphasised the need for reliable data and stronger mineral processing infrastructure to attract investment and improve gold recovery rates.
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.
