The Central Bank of Nigeria (CBN) has incorporated domestically refined gold, meeting London Bullion Market Association (LBMA) Good Delivery standards, into its foreign reserves, elevating total gold holdings to $3.5 billion.
This move represents a key advancement in Nigeria’s reserve diversification efforts amid global economic uncertainties.
Sourcing and responsible practices
The gold was procured through the National Gold Purchase Programme (NGPP), managed by the Solid Minerals Development Fund (SMDF), engaging local miners across the country.
The initiative adheres to strict responsible sourcing guidelines, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles for artisanal and small-scale gold.
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The Executive Secretary of SMDF, Fatima Umaru Shinkafi emphasized that this delivery validates the program’s robust formalization and supply chain due diligence processes.
Naira-based purchases preserve forex
CBN Governor Olayemi Cardoso revealed that the purchases were conducted in Naira, with prices pegged to LBMA benchmarks, avoiding any depletion of foreign exchange reserves.
This innovative structure allows Nigeria to accumulate reserves without spending dollars, directly supporting forex conservation while bolstering gold stockpiles. Cardoso highlighted this during a February 27, 2026, workshop on maximizing mineral economic benefits.
Strategic benefits for economy
The addition hedges against inflation, currency volatility, and geopolitical risks, aligning with global central bank trends toward gold diversification. It enhances macroeconomic stability, promotes local mining growth, and positions Nigeria’s minerals as a foundation for long-term economic resilience.
Industry leaders, including the World Gold Council’s Kurtulus Taskale Diamondopoulos, praised the CBN-SMDF partnership as a model for other nations.
