The Central Bank of Nigeria (CBN) has added a fresh batch of domestically sourced and internationally certified gold to the nation’s foreign reserves.
This latest acquisition has elevated the CBN’s total gold holdings to approximately $3.5 billion, the apex bank announced in a statement released on Wednesday, March 4, 2026.
The gold bars, refined to meet the stringent London Bullion Market Association (LBMA) Good Delivery standards—the global benchmark for quality, purity, and responsible production—were sourced entirely from local miners.
They were aggregated and supplied through the National Gold Purchase Programme (NGPP), coordinated by the Solid Minerals Development Fund (SMDF). This initiative not only formalizes Nigeria’s artisanal and small-scale mining sector but also ensures adherence to rigorous ethical guidelines, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s Responsible Gold Mining Principles (often referred to as the London Principles).
CBN Governor Olayemi Cardoso provided key details on the transaction during a high-level one-day workshop titled “Strategies to Maximize the Economic Benefits of Minerals in Nigeria.” Organized by the CBN’s Corporate Secretariat and Reserve Management Departments, the event brought together stakeholders from across the gold value chain to discuss opportunities, challenges, and pathways to unlocking the sector’s potential.
Cardoso explained that the CBN purchased the gold in naira at prices benchmarked against LBMA rates. This innovative structure allows the central bank to accumulate hard assets without depleting scarce foreign exchange, thereby preserving dollars for critical imports while bolstering overall reserve quality.
“This approach supports broader macroeconomic stability objectives and improves the quality of Nigeria’s external reserves,” Cardoso stated. He emphasized that the initiative aligns with a global shift among central banks toward gold as a reliable hedge against inflation, currency volatility, and geopolitical uncertainties. In an era of persistent global risks, gold has reclaimed its place as a cornerstone of reserve portfolios, offering stability that fiat currencies and other assets often lack.
The governor also linked the gold purchases to Nigeria’s broader development goals, noting that buying locally refined bullion stimulates the domestic mining industry, creates jobs, reduces illegal mining and smuggling, and channels mineral wealth into formal economic channels.
Fatima Shinkafi, Executive Secretary of the SMDF, hailed the delivery as proof of the fund’s effective formalization framework and robust supply chain due diligence. She described it as a milestone in building credible, traceable mineral supply chains.
Praise came from international quarters as well. Kurtulus Taskale-Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, commended the CBN and SMDF for designing the NGPP in full alignment with the twelve London Principles for responsible artisanal and small-scale gold sourcing. She positioned Nigeria’s model—where the CBN serves as the sole off-taker and the SMDF manages fiscal and supply-chain aspects—as a blueprint for other resource-rich nations.
Samaila Zubairu, President and CEO of the Africa Finance Corporation, reaffirmed his institution’s support for formalizing Nigeria’s mineral sector. He called for better geological data, upgraded processing infrastructure, and investments to enhance recovery rates, minimize environmental damage, and sustain central bank acquisitions.
Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, urged accelerated investment in exploration, greater sector transparency, and the development of commodity exchanges. She pointed out that Nigeria’s gold reserves remain modest compared to peers and stressed the need for strategic stockpiling.
The Domestic Gold Purchase Programme sits at the heart of the CBN’s multi-pronged strategy to enhance reserve quality, mitigate external vulnerabilities, and leverage Nigeria’s abundant mineral resources for sustained economic stability.
This gold milestone comes amid impressive gains in Nigeria’s overall external buffers. Governor Cardoso recently disclosed that net foreign exchange reserves surged to $34.80 billion by the end of 2025—a dramatic 772% increase from $3.99 billion at the close of 2023. Within 2025 alone, net reserves climbed 51% from $23.11 billion at the end of 2024, while gross external reserves rose by $5.52 billion to $45.71 billion.
These figures signal a marked improvement in the depth and quality of Nigeria’s external position, driven by ongoing reforms, improved transparency, and innovative reserve management approaches.
As global uncertainties persist and gold prices remain elevated, Nigeria’s blend of local sourcing and international compliance positions the country to strengthen its economic defenses while nurturing a vital domestic industry.
WHAT YOU SHOULD KNOW
Nigeria’s Central Bank has boosted its gold reserves to $3.5 billion by purchasing and adding locally mined, LBMA-certified gold—all paid for in naira.
Through the National Gold Purchase Programme, the CBN is building stronger, more resilient foreign reserves without spending scarce foreign currency, while simultaneously supporting domestic mining and aligning with global best practices for responsible sourcing. This marks a practical, homegrown step toward long-term economic stability.
