Nigeria has taken a decisive step toward strengthening its external reserves and repositioning its mineral wealth as a strategic economic asset, as the Central Bank of Nigeria (CBN) confirmed the receipt of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into the nation’s foreign reserves.
The milestone acquisition raises the CBN’s gold holdings to an estimated $3.5 billion, marking one of the most significant reserve diversification moves in recent years and reinforcing the apex bank’s strategy to reduce external vulnerabilities.
A Strategic Reserve Shift
At a one-day workshop titled Strategies to Maximise the Economic Benefits of Minerals in Nigeria, held in Abuja on February 27, 2026, CBN Governor Mr. Olayemi Cardoso revealed that the monetary-grade gold was purchased in Naira at prices linked to LBMA benchmarks.
The structure of the transaction, he explained, allows Nigeria to strengthen its gold reserves without expending foreign exchange. By paying in local currency for domestically refined bullion, the apex bank preserved external reserves while adding a globally tradable, inflation-hedging asset to its portfolio.
“This model enhances reserve accretion and supports macroeconomic stability,” Cardoso noted, describing the move as both strategic and timely in an era of global economic uncertainty.
Across the world, central banks have been increasing their gold holdings amid geopolitical tensions, volatile currencies, and persistent inflationary pressures. Gold has regained prominence as a safe-haven asset and a hedge against systemic shocks — a trend Nigeria is now aligning with.
Domestic Gold, Global Standards
The gold was aggregated under the National Gold Purchase Programme (NGPP) by the Solid Minerals Development Fund (SMDF), which operates as fiscal and supply chain manager for the initiative.
The programme integrates artisanal and small-scale miners into a structured, transparent value chain governed by internationally recognised responsible sourcing standards. It aligns with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the London Principles of the World Gold Council, ensuring traceability, environmental protection, and ethical mining practices.
Executive Secretary of SMDF, Hajiya Fatima Umaru Shinkafi, described the successful delivery of LBMA-standard gold as evidence that Nigeria’s formalisation framework is gaining credibility and traction.
The CBN acts as sole off-taker under the programme, providing guaranteed market access for responsibly sourced gold while strengthening its reserve profile.
Global Endorsement and Investment Push
The World Gold Council commended the NGPP’s alignment with its twelve London Principles for responsible artisanal and small-scale gold sourcing. Its Director of Central Banks and Public Policy, Ms. Kurtulus Taskale Diamondopoulos, described the Nigerian model as a strong template for mineral-producing nations seeking to formalise their gold sectors while supporting central bank reserve accumulation.
Meanwhile, President and CEO of the Africa Finance Corporation (AFC), Mr. Samaila Zubairu, reaffirmed the institution’s commitment to financing Nigeria’s mineral sector. He emphasised that accurate geological data, improved mineral processing infrastructure, and higher gold recovery rates are essential to unlocking investment, reducing environmental degradation, and sustaining central bank purchases.
Adding an industry perspective, Ms. Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, underscored the urgency of building strategic gold reserves. She pointed out that Nigeria’s gold reserve levels remain relatively low compared to peer economies and called for deeper investments in exploration, transparency, and commodity exchange development.
Reform as the Next Frontier
For Cardoso, the gold acquisition is only one component of a broader reform agenda aimed at repositioning Nigeria’s mineral wealth within a resilient macroeconomic framework.
He stressed that global reserve management strategies are evolving rapidly, driven by geopolitical realignments and supply chain disruptions. In this environment, countries that prioritise diversification, governance, and institutional credibility will be better positioned to withstand shocks.
Nigeria, he argued, possesses immense natural and human resource potential — but unlocking it requires policy coordination, strict adherence to global standards, and long-term planning.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, brought together policymakers, financial institutions, mining operators, and development partners to align strategies and deepen collaboration across the gold value chain.
Positioning Minerals as a Stability Pillar
The Domestic Gold Purchase Programme forms part of the CBN’s broader reserve management strategy aimed at improving reserve quality, reducing external dependence, and insulating the economy from currency and commodity price volatility.
By formalising artisanal mining, linking local production to global standards, and creating a Naira-denominated purchase mechanism, the initiative bridges monetary policy objectives with industrial development goals.
With LBMA-standard gold now secured in Nigeria’s reserves, the CBN has signalled a long-term commitment to transforming mineral resources from largely underutilised assets into instruments of financial resilience and economic sovereignty.
As global economic uncertainty persists, the success of the programme may well determine how effectively Nigeria leverages its mineral wealth to strengthen macroeconomic stability and investor confidence.
The Central Bank of Nigeria boosts foreign reserves with $3.5bn in locally refined LBMA-standard gold, as Governor Olayemi Cardoso outlines reforms to unlock Nigeria’s mineral potential and strengthen economic stability.
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