Nigeria’s foreign reserves have received a significant boost as the Central Bank of Nigeria (CBN) announced that the value of its gold holdings now stands at approximately $3.5 billion.
In a statement, the apex bank confirmed it has taken delivery of responsibly sourced gold refined to internationally recognised standards.
The gold was aggregated within Nigeria through the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme.
CBN Governor Olayemi Cardoso, speaking at a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria, said the bank purchased the monetary-grade gold in naira at prices linked to London Bullion Market Association (LBMA) benchmarks.
“The Central Bank acquired the monetary-grade gold in naira at pricing linked to LBMA benchmarks, a structure designed to preserve Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves,” Cardoso said.
He explained that purchasing domestically refined gold without deploying foreign currency enhances reserve accretion and supports broader macroeconomic stability objectives.
Cardoso noted the changing pattern of global reserve management, with central banks worldwide prioritising gold amid persistent geopolitical and market uncertainties.
“Central banks around the world are prioritising economic resilience amid persistent geopolitical and market uncertainties. Gold has regained importance as a hedge against inflation and volatility,” he said.
He added that other critical minerals are also gaining importance due to their role in global supply chains and industrial development.
Cardoso stressed that Nigeria’s mineral resources have immense potential to drive economic growth if managed with prudence, strong governance, and long-term planning.
“Nigeria’s immense natural and human resource potential can only be fully realised through prudence, strategic coordination and long-term planning,” he said.
He emphasised the need for institutions in the mineral sector to adhere to internationally recognised standards to maintain credibility and attract investment.
The workshop, organised by the CBN’s Corporate Secretariat and Reserve Management departments, engaged stakeholders in the gold sector to deepen understanding of opportunities and challenges across the value chain.
Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold demonstrates that Nigeria’s gold supply chain can meet global requirements when properly organised.
She highlighted the strength of the fund’s formalisation framework and due diligence processes for responsible sourcing.
Director of Central Banks and Public Policy at the World Gold Council, Kurtulus Taskale Diamondopoulos, commended the CBN and SMDF for aligning the National Gold Purchase Programme with internationally recognised principles.
She described the arrangement — with the CBN as sole buyer and SMDF managing the supply chain — as a model for other countries seeking to strengthen their gold sectors.
President and CEO of the Africa Finance Corporation (AFC), Samaila Zubairu, reaffirmed AFC’s commitment to supporting Nigeria’s mineral sector development.
Zubairu stressed the need for accurate data, stronger mineral processing infrastructure, improved gold recovery, and reduced environmental impact to attract investment.
Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, called for building strategic gold reserves and greater use of commodity exchanges to maximise the economic value of Nigeria’s mineral resources.
She noted that Nigeria’s current gold reserve levels remain relatively low compared to some other countries and urged greater investment in exploration and improved transparency in the sector.
The CBN said the Domestic Gold Purchase Programme is part of its broader strategy to strengthen reserve quality, reduce external vulnerabilities, and position
Nigeria’s mineral resources as a key pillar of long-term economic stability.
