File: CBN Building
This a significant step in its reserve diversification strategy.
The Central Bank of Nigeria has received domestically sourced gold refined to international standards into the country’s foreign reserves, raising its total gold holdings to about $3.5bn.
The apex bank disclosed this in a statement issued on Wednesday, noting that the bullion was refined to the London Bullion Market Association Good Delivery standards.
The statement read, “The Central Bank of Nigeria has taken delivery of responsibly sourced gold refined to London Bullion Market Association Good Delivery standards into its foreign reserves. This brings the CBN’s total gold holdings to $3.5bn, marking a significant step in its reserve diversification strategy.”
According to the bank, the gold was sourced locally and aggregated by the Solid Minerals Development Fund through the National Gold Purchase Programme.
The CBN explained that the programme works with local miners and follows a responsible sourcing framework aligned with the Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria held on February 27, 2026, the Governor of the CBN, Mr Olayemi Cardoso, said the monetary authority purchased the gold in naira at prices linked to LBMA benchmarks.
According to him, the structure allows the apex bank to build reserves without using foreign currency while strengthening the country’s gold holdings.
Cardoso said the approach supports broader macroeconomic stability objectives and improves the quality of Nigeria’s external reserves.
The governor noted that the initiative also reflects changing global trends in reserve management, where central banks are increasingly turning to gold as a hedge against inflation and geopolitical risks.
He said the purchase of locally refined gold enables Nigeria to strengthen its reserve buffers while supporting the development of the domestic mining sector.
Cardoso added that the workshop organised by the CBN’s Corporate Secretariat and Reserve Management Departments provided a platform for engagement with stakeholders across the gold value chain.
According to him, the session was aimed at deepening understanding of the sector’s opportunities and challenges while exploring strategies to maximise the economic value of Nigeria’s mineral resources.
He stressed that many central banks are now prioritising economic resilience amid persistent global uncertainties, noting that gold has regained prominence in reserve portfolios due to its ability to hedge against inflation and financial market volatility.
Cardoso said other critical minerals are also becoming increasingly important in global supply chains and advanced industrial development.
He emphasised that Nigeria’s vast natural and human resources could only be fully harnessed through prudent management, strong coordination and long-term policy planning.
He also highlighted the importance of compliance with internationally recognised standards, stressing that institutional credibility depends on robust governance frameworks.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, said the successful delivery of LBMA-standard gold demonstrated the strength of the fund’s formalisation framework and supply chain due diligence processes.
Also speaking, the Director of Central Banks and Public Policy at the World Gold Council, Ms Kurtulus Taskale-Diamondopoulos, commended the CBN and SMDF for designing the Nigerian Gold Purchase Programme in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She noted that the partnership between the CBN as sole off-taker and the SMDF as fiscal and supply chain manager provides a model for other countries seeking to establish similar programmes.
The President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the corporation’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.
He stressed the need for accurate geological data and stronger mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.
The Executive Vice Chairman of Kian Smith Gold Company, Ms Nere Emiko, also called for greater investment in exploration and transparency across the sector.
She noted that Nigeria’s gold reserves remain relatively low compared to many peer countries and urged policymakers to accelerate efforts to build strategic reserves and develop commodity exchanges that can support the sector.
The CBN stated that the Domestic Gold Purchase Programme forms part of its broader strategy to enhance the quality of Nigeria’s reserves, reduce external vulnerabilities and position the country’s mineral resources as a pillar of long-term economic stability.
The CBN governor earlier disclosed Nigeria’s net foreign exchange reserves rose to $34.80bn at the end of 2025, representing a 772 per cent increase from $3.99bn recorded at the end of 2023, and signalling what he described as a significant strengthening in the country’s external buffers.
The net reserves rose from $23.11bn at the end of 2024 to $34.80bn at the end of 2025. Over the same period, gross external reserves increased to $45.71bn from $40.19bn, representing a rise of $5.52bn.
Also, Nigeria’s gross external reserves stood at $50.45bn as of February 16, 2026.
Gross reserves refer to the total stock of foreign assets held by the Central Bank of Nigeria, including foreign currencies, gold, and other external assets.
Net reserves, however, strip out short-term liabilities and obligations, providing a clearer picture of the portion of reserves that is readily available to defend the naira and meet external commitments.
