CBN Boosts Foreign Reserves with $3.5bn Gold Holdings from Domestic Purchase Programme

The Central Bank of Nigeria (CBN) has strengthened Nigeria’s foreign reserves with the addition of responsibly sourced gold refined to **London Bullion Market Association (LBMA) Good Delivery standards, bringing the bank’s total gold holdings to about $3.5 billion.

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The gold, sourced locally within Nigeria, was aggregated through the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP). The programme works with local miners and follows responsible sourcing practices in line with guidelines of the Organisation for Economic Co-operation and Development (OECD) and the **World Gold Council.

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Speaking at a one-day workshop on Strategies to Maximise the Economic Benefits of Minerals in Nigeria, held on February 27, 2026, the CBN Governor, Olayemi Cardoso, revealed that the apex bank purchased the monetary-grade gold in naira, with pricing tied to LBMA benchmarks.

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According to him, the structure allows the CBN to build gold reserves without spending foreign exchange, thereby preserving Nigeria’s external reserves while strengthening its reserve portfolio. He noted that the move aligns with the bank’s broader efforts to enhance macroeconomic stability through strategic reserve diversification.

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Cardoso explained that global reserve management strategies are evolving as central banks respond to rising economic and geopolitical uncertainties. He said the workshop reflects Nigeria’s determination to manage its mineral resources responsibly and strategically in a changing global economic environment where resilience and diversification have become critical.

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He added that the engagement, organised by the CBN’s Corporate Secretariat and Reserve Management Departments, aimed to provide a platform for dialogue with key stakeholders in the gold sector while deepening understanding of opportunities and challenges across the industry’s value chain.

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The CBN governor also pointed out that gold is regaining prominence among central banks as a hedge against inflation and market volatility, while other critical minerals are increasingly shaping global supply chains and industrial development.

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He stressed that Nigeria’s vast natural resources can only deliver lasting economic benefits through prudent management, strong governance frameworks and long-term strategic planning.

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Also speaking, the Executive Secretary of SMDF, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold highlights the effectiveness of the fund’s supply-chain due-diligence and mining formalisation framework.

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Meanwhile, the Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for designing the NGPP in line with the London Principles for responsible artisanal and small-scale gold sourcing. She noted that the collaboration between the CBN as sole off-taker and SMDF as supply-chain manager offers a strong model for other countries seeking to develop similar programmes.

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In his remarks, the President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the institution’s commitment to supporting Nigeria’s mineral sector through financing and formalisation initiatives.

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He emphasised the importance of reliable geological data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.

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Also speaking, the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for increased investment in exploration, transparency and commodity exchange systems to help Nigeria build stronger strategic gold reserves.

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The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to improve the quality of Nigeria’s reserves, reduce external vulnerabilities and position the country’s mineral resources as a key pillar of long-term economic stability.

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