The Central Bank of Nigeria (CBN) says its gold reserves have increased to $3.5 billion following the acquisition of newly refined gold that meets the London Bullion Market Association (LBMA) Good Delivery standards.
In a statement issued on Wednesday, March 4, the apex bank said the gold was sourced locally through the national gold purchase programme, part of ongoing efforts to diversify Nigeria’s foreign reserves. The development comes as global gold prices surge, recently climbing above $5,000 per ounce.
According to the CBN, the gold was aggregated by the Solid Minerals Development Fund (SMDF) in collaboration with artisanal and small-scale miners operating under a responsible sourcing framework aligned with the guidelines of the Organisation for Economic Co-operation and Development and the World Gold Council’s London Principles.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso said the central bank purchased the monetary-grade gold in naira using prices linked to LBMA benchmarks.
He explained that the arrangement enables Nigeria to strengthen its reserves without using foreign currency. “By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” he said.
Cardoso noted that global reserve management strategies are shifting amid rising economic uncertainty, with gold regaining importance as a hedge against inflation and financial market volatility. He added that the domestic gold purchase programme forms part of the CBN’s broader strategy to improve the quality of Nigeria’s reserves and reduce exposure to external shocks.
Also speaking at the event, Fatima Umaru, Executive Secretary of the SMDF, said the delivery of LBMA-standard gold highlights the effectiveness of the organisation’s formalisation framework and supply chain due diligence process.
Kurtuluş Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, commended the collaboration between the CBN and SMDF, noting that the national gold purchase programme aligns with the 12 London Principles for responsible artisanal and small-scale gold sourcing.
She added that the partnership—where the CBN serves as the sole off-taker and the SMDF manages fiscal and supply-chain responsibilities—could serve as a model for other countries seeking to formalise gold purchases from small-scale mining operations.
Meanwhile, Samaila Zubairu, President and Chief Executive Officer of the Africa Finance Corporation, reaffirmed the institution’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.
He stressed the need for reliable geological data and improved mineral processing infrastructure to attract investment, boost gold recovery rates, reduce environmental damage and support central bank purchases.
Nere Emiko, Executive Vice-Chairman of Kian Smith Gold Company, also called for greater investment in exploration and increased transparency in the sector, noting that Nigeria’s gold reserves remain relatively modest compared to those of peer economies.
