Nigeria’s external reserves have climbed to $3.5 billion in gold holdings following the addition of locally refined bullion meeting London Bullion Market Association (LBMA) Good Delivery standards, the Central Bank of Nigeria (CBN) has disclosed.
The latest consignment was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP) and delivered into the apex bank’s reserves as part of its diversification drive.
Speaking at a workshop on strategies to maximise the economic benefits of minerals in Nigeria, CBN Governor, Olayemi Cardoso, said the monetary-grade gold was purchased in naira at prices linked to LBMA benchmarks.
According to him, the transaction structure enabled the bank to strengthen its gold reserves without deploying foreign exchange, thereby preserving external liquidity while enhancing reserve growth.
Cardoso noted that the move aligns with broader macroeconomic stability objectives, particularly amid global uncertainties, as central banks worldwide increasingly turn to gold as a hedge against inflation and geopolitical risks.
The NGPP sources gold from local miners under a responsible sourcing framework aligned with international due diligence standards. While the CBN acts as the sole off-taker, the SMDF oversees fiscal and supply chain management.
The CBN governor stressed that Nigeria’s mineral wealth can only translate into sustainable economic gains through prudent management, institutional credibility and strict adherence to global best practices.
Executive Secretary of the SMDF, Hajiya Fatima Umaru Shinkafi, described the successful delivery of LBMA-standard gold as proof of strengthened formalisation and due diligence processes within the sector.
Also speaking, President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed support for mineral sector financing, while Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for deeper investment in exploration and processing infrastructure.
The apex bank maintained that the domestic gold purchase programme remains central to its strategy to enhance reserve quality, reduce external vulnerabilities and position Nigeria’s mineral assets as a pillar of long-term economic stability.
CBN Gold Reserves Rise to $3.5bn as Local Bullion Boosts External Assets
