Nigeria is gradually expanding the role of gold in its reserve strategy, with the Central Bank of Nigeria (CBN) confirming that the country’s gold holdings have now reached $3.5 billion.
The increase follows the delivery of locally sourced gold refined to the London Bullion Market Association (LBMA) Good Delivery standard, a globally recognised benchmark for high-quality bullion. The gold was acquired through the National Gold Purchase Programme (NGPP), an initiative aimed at strengthening Nigeria’s reserves while supporting the formalisation of the domestic mining industry.
Rather than sourcing bullion from international markets, the CBN purchases gold within Nigeria and pays in naira, a structure designed to build reserve assets without placing additional pressure on the country’s foreign exchange resources.
CBN governor Olayemi Cardoso explained that this approach allows the bank to increase the quality and diversity of its reserves while reinforcing overall economic stability. He noted that, as global economic conditions remain uncertain, many central banks are returning to gold as a reliable store of value and a hedge against inflation.
The bullion purchased under the programme is aggregated by the Solid Minerals Development Fund (SMDF), which works with artisanal and small-scale miners across the country. These operations follow responsible sourcing frameworks that align with international standards, including OECD due-diligence guidelines and the World Gold Council’s London Principles.
According to Fatima Umaru, executive secretary of the SMDF, the successful delivery of gold meeting LBMA standards demonstrates that Nigeria’s efforts to formalise small-scale mining and improve supply chain oversight are producing results.
The initiative has also drawn praise from international industry stakeholders. Kurtuluş Diamondopoulos, director of central banks and public policy at the World Gold Council, said the NGPP is structured in line with the organisation’s principles for responsible gold sourcing and could serve as a model for other countries looking to integrate artisanal mining into formal financial systems.
Beyond reserve accumulation, the programme is expected to stimulate broader growth in Nigeria’s mineral economy. Samaila Zubairu, president and chief executive officer of the Africa Finance Corporation (AFC), highlighted the importance of improved geological data and stronger mineral-processing capacity to unlock greater investment in the sector.
Industry leaders have also called for deeper exploration and improved transparency. Nere Emiko, executive vice-chairman of Kian Smith Gold Company, noted that Nigeria still holds relatively small gold reserves compared with many peer economies, suggesting there remains considerable room for expansion as the sector develops.
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