Nigeria’s Gold Reserves Reach $3.5 Billion
Nigeria’s Central Bank has significantly bolstered its gold reserves, with the total value now standing at $3.5 billion. This increase comes after the bank took delivery of responsibly sourced gold that meets the stringent standards set by the London Bullion Market Association (LBMA) for Good Delivery. The gold has been incorporated into the country’s foreign reserves, marking a pivotal step in Nigeria’s efforts to diversify and strengthen its economic foundation.
The gold, sourced within Nigeria, was aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP). This initiative is designed to support local miners while ensuring that the gold is responsibly sourced. The program operates under a framework aligned with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles, which emphasize ethical and sustainable practices in the gold sector.
During a recent one-day workshop on strategies to maximize the economic benefits of minerals in Nigeria, CBN Governor Mr. Olayemi Cardoso shared insights about the bank’s acquisition of monetary-grade gold. He noted that the gold was purchased in Naira, with pricing linked to LBMA benchmarks. This structure allows the bank to preserve Nigeria’s foreign exchange holdings while simultaneously strengthening its gold reserves.
Cardoso explained that by acquiring domestically refined gold without using foreign currency, the transaction not only enhances reserve accretion but also supports broader macroeconomic stability objectives. He pointed out that global reserve management strategies are evolving, with increasing emphasis on resilience amid rising economic uncertainties.
The workshop, organized by the CBN’s Corporate Secretariat and Reserve Management Departments, aimed to create a structured platform for engagement with key players in the gold sector. It sought to deepen understanding of the industry’s current landscape, opportunities, and challenges across its value chain. Cardoso emphasized that central banks worldwide are prioritizing economic resilience, with gold regaining importance as a hedge against inflation and volatility.
He also highlighted the role of other critical minerals in shaping global supply chains and industrial development. Cardoso stressed that Nigeria’s natural and human resource potential can only be fully realized through prudence, strategic coordination, and long-term planning. He underscored the need for strict adherence to internationally recognized standards, noting that institutional credibility depends on strong governance frameworks.
Key Players and Their Contributions
The Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, praised the successful delivery of LBMA-standard gold, highlighting the strength of the organization’s formalization framework and supply chain due diligence processes.
Ms. Kurtulus Taskale Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, commended both the CBN and SMDF for aligning the Nigerian Gold Purchase Programme (NGPP) with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
Mr. Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC), reaffirmed AFC’s commitment to financing and formalizing Nigeria’s mineral sector. He emphasized 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 at the event was the Executive Vice Chairman of Kian Smith Gold Company. Ms. Nere Emiko underscored the urgent need for Nigeria to build strategic gold reserves and leverage commodity exchanges. She noted the country’s low reserve levels relative to peers and called for greater investment in exploration and transparency.
Strategic Implications
The Domestic Gold Purchase Programme is part of the CBN’s broader strategy to enhance reserve quality, reduce external vulnerabilities, and position Nigeria’s mineral wealth as a pillar of long-term economic stability. This initiative reflects a shift toward more sustainable and resilient economic practices, ensuring that Nigeria can better navigate global economic fluctuations.
