CBN Boosts Foreign Reserves With $3.5bn Locally-sourced London Bullion Market-standard Gold

BY SILAS EZEUGWU, MARK ITSIBOR, Abuja AND BUKOLA ARO-LAMBO Lagos

The Central Bank of Nigeria (CBN) has taken delivery of responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into its foreign reserves. This brings the CBN’s total gold holdings to $3.5 billion, marking a significant step in its reserve diversification strategy.

The gold, sourced in Nigeria, was aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP). The programme involves local miners and operates within a responsible sourcing framework aligned with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.

Speaking at the one-day Workshop on Strategies to Maximise the Economic Benefits of Minerals in Nigeria on Friday, February 27, 2026, the Governor of the Central Bank of Nigeria (CBN),  Olayemi Cardoso, disclosed that the CBN acquired the monetary-grade gold in Naira at pricing linked to LBMA benchmarks, a structure designed to preserve Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves. By purchasing domestically refined gold without deploying foreign currency, he said, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives.

Cardoso also highlighted major shifts in global reserve management strategies, noting their increasing importance amid rising global economic uncertainties. He described the event as a reflection of Nigeria’s shared commitment to responsible and strategic management of its mineral resources. He emphasised that the workshop underscores the nation’s readiness to adapt to the realities of an evolving global economy, where resilience, diversification, and prudent governance have become increasingly vital.

He further explained that the session, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, was designed to create a structured platform for engagement with key players in the gold sector and to deepen understanding of the industry’s current landscape, opportunities, and challenges across its value chain.

The governor noted that central banks around the world are prioritising economic resilience amid persistent geopolitical and market uncertainties. Gold, he said, has regained importance as a hedge against inflation and volatility, while other critical minerals are increasingly shaping global supply chains and advanced industrial development.

Cardoso emphasised that Nigeria’s immense natural and human resource potential can only be fully realised through prudence, strategic coordination, and long-term planning.

He highlighted the need for strict adherence to internationally recognised standards, stressing that institutional credibility depends on strong governance frameworks.

The executive secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, highlighted that the successful delivery of LBMA-standard gold demonstrates the strength of the organisation’s formalisation framework and supply chain due-diligence processes. The World Gold Council’s director of Central Banks and Public Policy, Kurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for designing the Nigerian Gold Purchase Programme (NGPP) in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing. She noted that the partnership between the CBN as sole off-taker and the SMDF as fiscal and supply-chain manager offers a strong model for other countries seeking to strengthen similar programmes.

The President and CEO of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirmed AFC’s commitment to financing and formalising Nigeria’s mineral sector, stressing the importance of accurate data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases. Also speaking, the executive vice chairman of Kian Smith Gold Company, Nere Emiko, underscored the urgent need for Nigeria to build strategic gold reserves and leverage commodity exchanges, noting the country’s low reserve levels relative to peers and calling for greater investment in exploration and transparency.

The Domestic Gold Purchase Programme forms part of the Central Bank’s broader strategy to enhance reserve quality, reduce external vulnerabilities, and position Nigeria’s mineral wealth as a pillar of long-term economic stability.