The Central Bank of Nigeria (CBN) has incorporated $3.5 billion worth of domestically sourced, internationally refined gold into the country’s foreign reserves, marking a significant step in its reserve diversification strategy. The bullion, refined to London Bullion Market Association (LBMA) Good Delivery standards, was sourced from local miners and aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme.
The CBN stated the gold was purchased in naira, linked to LBMA price benchmarks, allowing the bank to build reserves without deploying foreign currency. This aligns with a broader trend of central banks increasing gold holdings as a hedge against inflation and geopolitical risks. Governor Olayemi Cardoso, speaking at a February 27 workshop on mineral sector strategies, emphasized that the initiative strengthens Nigeria’s external buffers while supporting domestic mining sector formalisation and development.
The purchase programme operates through a partnership where the SMDF manages the supply chain and fiscal aspects, ensuring compliance with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles. Fatima Shinkafi, Executive Secretary of the SMDF, confirmed the delivery demonstrates robust due diligence processes. Kurtulus Taskale-Diamondopoulos of the World Gold Council praised the model, noting it provides a template for other nations.
Stakeholders at the workshop highlighted complementary needs. Samaila Zubairu of the Africa Finance Corporation stressed the urgency of improved geological data and processing infrastructure to boost investment and recovery rates. Nere Emiko of Kian Smith Gold Company urged accelerated efforts to build strategic reserves and establish commodity exchanges, noting Nigeria’s gold reserves remain modest compared to peers.
The gold acquisition coincides with a notable rise in Nigeria’s total foreign reserves. The CBN reported net reserves grew to $34.80 billion by end-2025 from $3.99 billion at end-2023, while gross reserves reached $50.45 billion as of February 16, 2026. The central bank reiterated that the Domestic Gold Purchase Programme is integral to enhancing reserve quality, reducing external vulnerabilities, and positioning mineral resources as a pillar of long-term economic stability. This move underscores a strategic shift toward leveraging domestic assets to fortify national financial security amid global uncertainty.
