The Central Bank of Nigeria has significantly expanded its reserve diversification strategy after taking delivery of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards, bringing its total gold holdings to approximately $3.5 billion.

The bullion was sourced within Nigeria and aggregated through the National Gold Purchase Programme (NGPP) implemented by the Solid Minerals Development Fund.

The programme brings together local miners, refiners and financial institutions within a responsible sourcing framework aligned with global standards, including due diligence guidelines of the Organisation for Economic Co‑operation and Development and the sourcing principles of the World Gold Council.

Purchased in Naira, Preserving Nigeria’s Foreign Exchange

Governor Olayemi Cardoso disclosed that the apex bank acquired the monetary-grade gold in naira, with pricing benchmarked to international LBMA rates.

The strategy allows Nigeria to increase its strategic reserves without drawing down scarce foreign exchange, while strengthening the resilience of its reserve portfolio.

According to Cardoso, the approach simultaneously supports:

• reserve accumulation
• domestic mining sector development
• macroeconomic stability

The gold acquisition forms part of broader policy efforts to strengthen Nigeria’s reserve composition amid global economic uncertainty and volatile financial markets.

Responsible Supply Chain Framework

The Nigerian Gold Purchase Programme operates within internationally recognised standards designed to ensure transparency and sustainability across the gold supply chain.

Officials say the programme complies with the London Principles for responsible artisanal and small-scale gold sourcing, providing a framework that improves traceability and governance within Nigeria’s mining ecosystem.

Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, noted that the successful delivery of LBMA-standard bullion demonstrates the effectiveness of Nigeria’s emerging gold formalisation structure.

She said the framework strengthens supply-chain integrity while expanding opportunities for responsible artisanal mining participation.

International Partners Endorse Nigeria’s Gold Strategy

The initiative has received positive international recognition.

Kurtuluş Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, commended the design of the programme, describing the partnership between the CBN and SMDF as a model that could be replicated in other resource-rich economies.

Meanwhile, the President of the Africa Finance Corporation, Samaila Zubairu, emphasised the importance of developing processing infrastructure, accurate mineral data and financing structures to unlock Nigeria’s mining potential.

Building Strategic Mineral Wealth

Industry participants say Nigeria’s gold initiative reflects a broader shift toward leveraging natural resources to strengthen national economic resilience.

The domestic gold purchase programme is expected to:

• formalise artisanal mining
• improve gold recovery rates
• attract investment into the mining sector
• strengthen the quality of Nigeria’s foreign reserves

Officials say the strategy ultimately positions Nigeria’s mineral wealth as a long-term pillar of macroeconomic stability.

BRANDECONOMY Insight

Nigeria’s move to incorporate LBMA-standard domestically sourced gold into its reserves reflects a broader strategic shift underway in global central banking.

Three major dynamics explain why this move is significant.

1. Global Central Banks Are Returning to Gold

Across the world, central banks are increasing gold holdings as a hedge against:

• currency volatility
• geopolitical shocks
• inflation

Gold is increasingly viewed as a strategic reserve asset outside the global dollar system.

2. Nigeria Is Converting Natural Resources into Monetary Assets

By purchasing locally mined gold in naira rather than foreign currency, the CBN effectively transforms domestic mineral wealth into reserve assets without placing additional pressure on foreign exchange reserves.

This is a rare strategy among emerging economies.

3. Mining Could Become Nigeria’s Next Strategic Sector

Nigeria possesses significant deposits of gold and other critical minerals, yet the sector contributes less than 1% of GDP.

If formalisation, data transparency and processing infrastructure improve, the mining sector could become a major source of reserve assets, exports and industrial development.

The gold purchase programme therefore represents more than a reserve strategy — it signals the early stages of Nigeria’s mineral-driven economic diversification.