The Central Bank of Nigeria (CBN) has delivered domestically sourced refined gold to London Bullion Market Association (LBMA) Good Delivery standards into the nation’s foreign reserves, raising its total gold holdings to $3.5 billion.
The domestically sourced and refined gold to monetary-grade quality was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP), integrating local miners within a responsible sourcing framework in alignment with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a one-day workshop on strategies to maximise the economic benefits of Nigeria’s minerals, CBN Governor, Mr. Olayemi Cardoso, disclosed that the apex bank acquired the gold in Naira at prices linked to LBMA benchmarks, adding that the structure preserves Nigeria’s foreign exchange (FX) holdings while strengthening the nation’s foreign reserves accretion.
Cardoso maintained that purchasing domestically refined gold without deploying foreign currency supports broader macroeconomic stability objectives and enhances the quality of external reserves.
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According to him, the monetary initiative reflects a shift in global reserve management strategies, as central banks are prioritizing economic resilience in the face of global geopolitical tensions and market volatility.
The apex bank governor said gold had regained value as a hedge against inflation and financial instability just as other critical minerals are reshaping global supply chains and industrial development.
Describing the workshop, which was convened by the CBN’s Corporate Secretariat and Reserve Management Departments as a platform to deepen engagement with stakeholders across the gold value chain and to address industry challenges and opportunities, Cardoso stressed that Nigeria’s abundant minerals and human resource potential can only be optimally harnessed through prudent governance, strategic coordination and long-term planning.
He pointed out that strict adherence to internationally recognised standards remained essential to maintaining institutional credibility.
In her remarks at the forum, Executive Secretary of the SMDF, Hajiya Fatima Shinkafi, said the successful delivery of LBMA-standard gold underscored the strength of the Fund’s formalisation framework and supply chain due diligence processes.
Commenting on Nigeria’s National Gold Purchase Programme (NGPP), the World Gold Council’s Director of Central Banks and Public Policy, Ms. Kurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for designing the NGPP in line with the 12 London Principles for responsible artisanal and small-scale gold sourcing.
She described the partnership in which the CBN serves as sole off-taker and the SMDF as fiscal and supply chain manager as a model for other countries seeking to strengthen similar initiatives.
This is even as the President/CEO of the Africa Finance Corporation (AFC), Mr. Samaila Zubairu, reaffirmed the corporation’s commitment to financing and formalising Nigeria’s mineral sector.
To enable the AFC support the nation with funding, Zubairu harped on the need for reliable geological data and expanded mineral processing infrastructure in the country to attract investment, improve gold recovery rates, reduce environmental impact and support central bank purchases.
Similarly, Executive Vice Chairman of Kian Smith Gold Company, Ms. Nere Emiko, canvassed the need for accelerated initiatives to build strategic gold reserves and deepen the use of commodity exchanges, noting that Nigeria’s gold reserve levels remain low relative to the nation’s peers like Ghana and advised the government on greater investment and transparency in its exploration.
