$3.5 BILLION IN LOCAL GOLD ADDED TO NIGERIA’S FOREIGN RESERVES
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Nigeria’s foreign reserves have received a boost after the Central Bank of Nigeria (CBN) announced that the value of its gold holdings has risen to approximately $3.5 billion.
The CBN said it has taken delivery of responsibly sourced gold refined to internationally recognized standards.
In a statement, the apex bank confirmed that the gold was sourced locally and refined to meet the Good Delivery standards of the London Bullion Market Association (LBMA), a global benchmark for gold quality and trading.
According to the CBN, the gold was aggregated within Nigeria through the efforts of the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme.
The initiative collaborates with local miners and adheres to responsible sourcing guidelines in line with international standards set by the Organisation for Economic Co-operation and Development (OECD) and the World Gold Council.
Speaking at a one-day workshop on strategies to maximize the economic benefits of minerals in Nigeria, CBN Governor Olayemi Cardoso said the apex bank purchased monetary-grade gold in naira at prices tied to international benchmarks set by the London Bullion Market Association.
Cardoso said the structure of the transaction enables Nigeria to bolster its gold reserves without tapping into foreign currency.
“The Central Bank acquired monetary-grade gold in naira at prices linked to LBMA benchmarks, a structure designed to preserve Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves,” he said.
He explained that buying domestically refined gold without using foreign currency helps improve the country’s reserve position and supports overall economic stability.
“By purchasing domestically refined gold without using foreign currency, the transaction boosts reserve accumulation and supports broader macroeconomic stability,” Cardoso said.
He also highlighted the evolving trends in global reserve management, noting that central banks worldwide are adjusting strategies in response to economic uncertainties and geopolitical tensions.
According to Cardoso, gold has regained prominence as a key asset for central banks due to its ability to preserve value during periods of inflation and market volatility.
“Central banks worldwide are focusing on economic resilience amid ongoing geopolitical and market uncertainties. Gold has once again become an important hedge against inflation and volatility,” he said.
He added that other critical minerals are also gaining significance due to their essential roles in global supply chains and industrial development.
The CBN governor said Nigeria’s mineral resources have the potential to contribute significantly to economic growth if managed carefully with strong governance and long-term planning.
“Nigeria’s vast natural and human resource potential can only be fully realized through prudence, strategic coordination, and long-term planning,” Cardoso said.
He emphasized the importance of institutions in the mineral sector adhering to internationally recognized standards to maintain credibility and attract investment.
Cardoso added that the workshop, organized by the CBN’s Corporate Secretariat and Reserve Management departments, provided a platform for engagement with stakeholders in the gold sector and helped deepen understanding of the opportunities and challenges across the value chain.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of gold refined to LBMA standards demonstrates that Nigeria’s gold supply chain can meet international requirements when properly organized.
She added that the achievement highlights the strength of the fund’s formalization framework and its due diligence processes for responsible sourcing.
Also speaking at the event, Kurtulus Taskale Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, praised the CBN and the Solid Minerals Development Fund for designing the National Gold Purchase Programme in line with internationally recognized principles for responsible gold sourcing.
She noted that the arrangement, in which the CBN serves as the sole buyer of gold while the Solid Minerals Development Fund manages the supply chain, provides a valuable model for other countries looking to strengthen their gold sectors.
Samaila Zubairu, President and Chief Executive Officer of the Africa Finance Corporation (AFC), said the corporation remains committed to supporting the growth of Nigeria’s mineral sector.
Zubairu added that accurate data and improved mineral processing infrastructure are crucial for attracting investment, enhancing gold recovery, and minimizing environmental impact.
He added that developing the sector would also enhance the central bank’s capacity to build stronger gold reserves through domestic purchases.
Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, said Nigeria needs to establish strategic gold reserves and leverage commodity exchanges more effectively to maximize the economic value of its mineral resources.
She noted that Nigeria’s current gold reserves remain relatively low compared with other countries and called for increased investment in mineral exploration and greater transparency in the sector.
The Central Bank said the Domestic Gold Purchase Programme is part of its broader strategy to enhance the quality of Nigeria’s reserves, reduce external vulnerabilities, and position the country’s mineral resources as a key pillar of long-term economic stability.
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