The Central Bank of Nigeria (CBN) has received a new tranche of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into the nation’s foreign reserves, raising its total gold holdings to $3.5 billion.
The gold, sourced within Nigeria, was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP).
The initiative 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 held on February 27, 2026, CBN Governor, Olayemi Cardoso, said the apex bank acquired the monetary-grade gold in naira at prices linked to LBMA benchmarks.
He explained that the structure was designed to preserve Nigeria’s foreign exchange reserves while strengthening gold holdings.
By purchasing domestically refined gold without deploying foreign currency, Cardoso noted, the transaction supports reserve accretion and broader macroeconomic stability objectives.
The governor highlighted evolving global reserve management strategies, stressing that gold has regained prominence as a hedge against inflation and geopolitical uncertainty.
He described the workshop as a demonstration of Nigeria’s commitment to the responsible and strategic management of its mineral resources in an increasingly volatile global economy.
According to him, the session, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, provided a platform for engagement with stakeholders across the gold value chain and aimed to deepen understanding of opportunities and challenges within the sector.
Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold underscored the strength 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 both the CBN and SMDF for aligning the NGPP with the twelve London Principles for responsible artisanal and small-scale gold sourcing, noting that the partnership offers a model for other countries.
Also speaking, President and Chief Executive Officer of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirmed the corporation’s commitment to supporting the formalisation and financing of Nigeria’s mineral sector.
He emphasised the importance of reliable data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and strengthen central bank purchases.
Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for accelerated efforts to build strategic gold reserves and leverage commodity exchanges, citing Nigeria’s relatively low reserve levels compared to peers and the need for increased investment in exploration and transparency.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to enhance reserve quality, reduce external vulnerabilities and position Nigeria’s mineral wealth as a pillar of long-term economic stability.
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