The Central Bank of Nigeria (CBN) has delivered to its foreign exchange reserves gold that has been responsibly sourced and refined in accordance with the Good Delivery Standards of the London Bullion Market Association (LBMA).
A statement from the apex bank on Wednesday said this brings the CBN’s total gold holdings to $3.5 billion and is an important step in its reserve diversification strategy.
The gold procured in Nigeria was collected by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Program (NGPP).
The program involves local miners and operates within a responsible sourcing framework in line with the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
At a recent workshop on strategies to maximize the economic benefits of minerals in Nigeria, CBN Governor Olayemi Cardoso said the CBN had acquired currency-grade gold in the Naira.
Cardoso acquired the gold at a price linked to the LBMA benchmark, a structure designed to preserve foreign currency holdings while strengthening Nigeria’s gold reserves.
He said that by purchasing domestically refined gold without using foreign currency, the deal would help increase foreign exchange reserves and support broader macroeconomic stability objectives.
He also highlighted major changes in global reserves management strategies, noting their increasing importance amid heightened global economic uncertainty.
Mr. Cardoso explained that the event reflected Nigeria’s common commitment to responsible and strategic management of mineral resources.
He said the workshop highlighted the country’s readiness to adapt to the realities of an evolving global economy, where resilience, diversification and wise governance are increasingly important.
He further said that the session was convened by the CBN’s Corporate Secretariat and Reserve Management Division to create a platform for engagement with key players in the gold sector.
The CBN Governor said the session was aimed at deepening understanding of the industry’s current situation, opportunities and challenges across the value chain.
He said central banks around the world were prioritizing economic resilience as geopolitical and market uncertainties persist.
He said that while other critical minerals are increasingly shaping global supply chains and advanced industrial development, gold is regaining importance as a hedge against inflation and volatility.
Cardoso said the potential of Nigeria’s immense natural and human resources could only be fully realized through prudence, strategic coordination and long-term planning.
He emphasized the need for strict compliance with internationally recognized standards and stressed that an organization’s credibility depends on a strong governance framework.
SMDF Executive Director Hajiya Fatima Shinkafi said the successful delivery of LBMA standard gold demonstrated the strength of the organization’s formalization framework and supply chain due diligence process.
Kurtulus Diamondpoulos, Director of Central Banking and Public Policy at the World Gold Council, commended both the CBN and SMDF for the design of the Nigeria Gold Purchase Program (NGPP).
Diamondpoulos confirmed that the NGPP was designed in line with the 12 London Principles of responsible artisanal small-scale gold sourcing.
He said the partnership between the CBN as the sole off-taker and the SMDF as the fiscal and supply chain manager provides a strong model for other countries looking to strengthen similar programs.
The President and CEO of African Finance Corporation (AFC), Samaira Zubairu, has reaffirmed AFC’s commitment to financing and formalizing Nigeria’s mineral sector.
He emphasized the importance of accurate data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.
Also, Mr. Nele Emiko, Executive Vice Chairman of Kian Smith Gold Company, stressed the urgent need for Nigeria to build strategic gold reserves and tap into commodity exchanges.
Emiko pointed out that the country’s reserves are low compared to other countries and called for greater investment in exploration and transparency.
The domestic gold purchase program forms part of the CBN’s broader strategy to improve the quality of reserves, reduce external vulnerabilities and position Nigeria’s mineral resources as a pillar of long-term economic stability.
