Nigeria’s push to diversify its foreign reserves has received a significant boost as the Central Bank of Nigeria (CBN) confirmed the addition of responsibly sourced, monetary-grade gold to its reserve holdings. The development raises the bank’s total gold reserves to about $3.5 billion and signals a deeper shift toward alternative reserve assets amid global economic uncertainty.
The newly acquired gold was sourced locally and refined to the London Bullion Market Association (LBMA) Good Delivery standard, the internationally recognised benchmark for high-quality bullion used in global financial markets. By adding domestically produced gold that meets these standards, the CBN is strengthening the quality of its reserve portfolio while reducing reliance on foreign exchange.
The gold was aggregated through Nigeria’s National Gold Purchase Programme (NGPP), an initiative coordinated by the Solid Minerals Development Fund (SMDF). The programme works with local artisanal and small-scale miners and operates under responsible sourcing guidelines aligned with the Organisation for Economic Co-operation and Development (OECD) Due Diligence standards and the responsible sourcing framework of the **World Gold Council.
Speaking at a one-day workshop titled Strategies to Maximise the Economic Benefits of Minerals in Nigeria held on February 27, 2026, CBN Governor Olayemi Cardoso said the central bank purchased the gold in naira at prices linked to global LBMA benchmarks. According to him, the structure allows Nigeria to strengthen its reserves without deploying scarce foreign currency.
He explained that acquiring domestically refined gold in local currency preserves the country’s foreign exchange resources while simultaneously increasing reserve assets. The move, he said, forms part of broader efforts by the apex bank to improve macroeconomic stability and reinforce the resilience of Nigeria’s financial system.
Cardoso also pointed to evolving global reserve management trends, noting that central banks worldwide are adjusting strategies in response to geopolitical tensions, inflation pressures and market volatility. Gold, he said, is regaining prominence as a safe-haven asset and an effective hedge against inflation and financial instability.
The CBN governor described the workshop as an important platform for engaging stakeholders across the gold value chain, including policymakers, miners, refiners and financial institutions. Organised by the CBN’s Corporate Secretariat and Reserve Management Departments, the event sought to deepen industry collaboration and identify strategies to maximise the economic benefits of Nigeria’s mineral resources.
Nigeria, Cardoso noted, possesses vast natural and human resources, but unlocking their full potential requires coordinated policies, long-term planning and strong governance frameworks. He stressed that adherence to globally recognised standards is critical for building institutional credibility and attracting international investment.
Also speaking at the event, the Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold demonstrates the effectiveness of the fund’s formalisation framework and supply-chain due diligence processes designed to bring artisanal mining activities into the formal economy.
From the international perspective, Kurtulus Taskale Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, praised the programme’s design. She said the NGPP aligns with the organisation’s twelve London Principles for responsible artisanal and small-scale gold sourcing, adding that the collaboration between the CBN as sole off-taker and SMDF as supply-chain manager could serve as a model for other countries seeking to build similar frameworks.
Industry stakeholders also highlighted the need for broader structural reforms in the mineral sector. The President and Chief Executive Officer of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirmed the institution’s commitment to financing mineral development and formalisation efforts. He emphasised that reliable geological data and stronger mineral processing infrastructure are essential to attract investment, improve gold recovery rates and reduce environmental impacts.
Meanwhile, Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, stressed the urgency of building strategic gold reserves and leveraging commodity exchanges to strengthen Nigeria’s position in the global gold market. She noted that Nigeria’s gold reserve levels remain relatively low compared to many peer economies, calling for increased investment in exploration, transparency and industry development.
The Domestic Gold Purchase Programme is a key pillar of the CBN’s broader reserve diversification strategy. By converting locally mined resources into internationally recognised reserve assets, the initiative aims to reduce external vulnerabilities, strengthen the country’s financial buffers and position Nigeria’s mineral wealth as a foundation for long-term economic stability.