The Central Bank of Nigeria (CBN) has strengthened Nigeria’s foreign reserves by adding locally sourced gold refined to international standards, bringing the bank’s total gold holdings to about $3.5 billion.
The gold, refined to the globally recognised Good Delivery standards of the London Bullion Market Association (LBMA), was aggregated through the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP).
The initiative integrates artisanal and small-scale miners into a responsible sourcing framework that complies with international best practices while promoting the formalisation of Nigeria’s gold mining sector.
Speaking at a workshop focused on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso said the apex bank acquired the monetary-grade gold in Naira, using pricing linked to LBMA benchmarks.
According to Cardoso, the arrangement helps preserve Nigeria’s foreign exchange while strengthening the country’s external reserves.
He explained that the move is part of the CBN’s broader strategy to diversify the country’s reserve assets, improve the quality of reserves, and reduce exposure to external economic shocks.
The governor added that harnessing Nigeria’s vast mineral resources, particularly gold, could play a critical role in supporting long-term economic stability and strengthening the nation’s financial resilience.
The National Gold Purchase Programme is expected to encourage responsible mining practices, boost local value addition, and position Nigeria’s solid minerals sector as a key contributor to economic growth.
