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Nigeria’s foreign reserves have received a significant boost as the Central Bank of Nigeria (CBN) confirmed that the value of its gold holdings has risen to approximately $3.5 billion following the acquisition of domestically sourced gold refined to international standards.
The apex bank disclosed that the gold was sourced locally and refined to meet the Good Delivery standards set by the London Bullion Market Association (LBMA), a globally recognised benchmark for gold quality and trading.
According to the CBN, the gold was aggregated within Nigeria through the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme, an initiative designed to formalise the gold value chain and strengthen Nigeria’s external reserves.
Speaking during a workshop on strategies to maximise the economic value of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso explained that the monetary-grade gold was purchased in naira using pricing benchmarks linked to LBMA standards. The structure of the transaction allows the central bank to expand its gold reserves without deploying foreign currency.
Cardoso noted that purchasing domestically refined gold in local currency helps protect Nigeria’s foreign exchange reserves while simultaneously strengthening the country’s reserve position and broader macroeconomic stability.
He also highlighted a global shift in reserve management strategies among central banks, noting that gold has regained prominence as a safe-haven asset in the face of rising geopolitical tensions, inflationary pressures and market volatility.
Beyond gold, Cardoso emphasised the increasing strategic importance of critical minerals within global supply chains and industrial development. He said Nigeria’s mineral resources could play a major role in economic growth if managed through sound governance, strategic coordination and long-term planning.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of gold refined to LBMA standards demonstrates that Nigeria’s gold supply chain can meet global quality requirements when properly structured and regulated.
She explained that the achievement reflects the effectiveness of the fund’s formalisation framework and responsible sourcing processes, which are aligned with global standards developed by the Organisation for Economic Co-operation and Development (OECD) and the World Gold Council.
Also speaking at the event, Kurtulus Taskale Diamondopoulos, Director for Central Banks and Public Policy at the World Gold Council, commended the collaboration between the CBN and the Solid Minerals Development Fund. She described the National Gold Purchase Programme as a model for other countries seeking to strengthen their gold sectors through responsible sourcing and structured supply chains.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, noted that improving geological data and expanding mineral processing infrastructure are essential to attract investment into Nigeria’s mining sector while also increasing gold recovery and reducing environmental risks.
He added that strengthening the mining ecosystem could further support the central bank’s strategy of building gold reserves through domestic purchases.
Meanwhile, the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for increased exploration activities and greater transparency within the mining sector. She stressed the need for Nigeria to develop strategic gold reserves and leverage commodity exchanges to maximise the economic value of its mineral resources.
The CBN said the Domestic Gold Purchase Programme forms part of its broader strategy to improve the quality and diversification of Nigeria’s foreign reserves while reducing external vulnerabilities. The initiative is also aimed at positioning the country’s mineral wealth as a key pillar of long-term economic resilience.
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