March 05, (THEWILL) — The Central Bank of Nigeria (CBN) has taken delivery of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards into its foreign reserves, raising total gold holdings to $3.5 billion in a move aimed at strengthening reserve diversification.
The gold was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP), which works with local miners under responsible sourcing standards aligned with OECD Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a workshop on strategies to maximise the economic benefits of minerals, CBN Governor, Olayemi Cardoso, said the apex bank purchased the monetary-grade gold in naira at prices linked to LBMA benchmarks. He noted that buying domestically refined gold without deploying foreign currency preserves Nigeria’s FX reserves while enhancing reserve accretion and macroeconomic stability.
Cardoso emphasised that gold is regaining prominence globally as a hedge against inflation and geopolitical uncertainty, adding that prudent governance and adherence to international standards are critical to unlocking Nigeria’s mineral potential.
SMDF Executive Secretary Fatima Umaru Shinkafi described the delivery as proof of the strength of Nigeria’s formalised gold supply chain, while the World Gold Council commended the structure of the NGPP. The Africa Finance Corporation reiterated its commitment to supporting mineral sector financing and processing infrastructure.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to improve reserve quality, reduce external vulnerabilities, and position mineral resources as a pillar of long-term economic stability.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
