The Central Bank of Nigeria (CBN) has fortified the country’s foreign reserves with the addition of domestically sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards, raising total gold holdings to approximately $3.5 billion.
The move, aggregated through the National Gold Purchase Programme (NGPP) under the Solid Minerals Development Fund (SMDF), is being hailed as a strategic step to diversify Nigeria’s reserve portfolio, reduce reliance on foreign currency, and stimulate growth in the domestic mining sector.
CBN Governor Olayemi Cardoso explained that the initiative allows the bank to acquire gold in naira at LBMA-linked prices, thereby strengthening reserve buffers without depleting foreign currency. “This approach supports macroeconomic stability and positions gold as a key pillar of Nigeria’s long-term economic resilience,” he said during a workshop on February 27, 2026, which convened stakeholders across the gold value chain.
Cardoso highlighted the growing global importance of gold as a hedge against inflation, geopolitical risk, and financial market volatility, stressing that Nigeria’s mineral wealth must be harnessed through careful policy planning, strong governance, and long-term coordination.
Industry stakeholders have commended the initiative. Fatima Shinkafi, Executive Secretary of SMDF, said the delivery of LBMA-standard gold validates Nigeria’s formalisation framework and supply chain oversight. Kurtulus Taskale-Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, praised the NGPP as a model for other countries seeking to formalise artisanal and small-scale gold sourcing in line with global best practices.
The Africa Finance Corporation and private sector players, including Kian Smith Gold Company, stressed the importance of accurate geological data, robust processing infrastructure, and transparency to attract investment and build strategic reserves. They noted that Nigeria’s gold holdings remain relatively low compared to peer countries, underscoring the potential for growth and industrialisation.
The CBN’s gold acquisition complements broader gains in Nigeria’s external reserves. Net foreign exchange reserves rose to $34.80 billion at the end of 2025, up from $3.99 billion in 2023, while gross external reserves stood at $50.45 billion as of February 16, 2026. Analysts say this demonstrates a significant strengthening of Nigeria’s external buffers, positioning the country to better defend the naira and meet international obligations.
By Juliet Ezeh, Abuja
