The Central Bank of Nigeria (CBN) has added responsibly sourced gold to its foreign reserves, increasing its gold holdings to $3.5 billion.
This move marks a significant step in Nigeria’s reserve diversification strategy, and the gold was refined to London Bullion Market Association (LBMA) Good Delivery standards.
The update was provided in a statement by the CBN on Wednesday.
What they are saying
According to the statement, the gold was sourced locally in Nigeria through the National Gold Purchase Programme (NGPP), which is managed by the Solid Minerals Development Fund (SMDF).
- The programme operates with a responsible sourcing framework in line with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
CBN Governor, Mr. Olayemi Cardoso, explained that the gold was acquired in Naira, with pricing linked to LBMA benchmarks, ensuring that foreign currency reserves were preserved while strengthening Nigeria’s gold reserves.
- “By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” said Cardoso.
He also noted the growing significance of gold in global reserve management, especially amid rising economic uncertainties.
Backstory
In 2024, the CBN reported that the value of its gold reserves increased to N2.77 trillion as of December 31, 2024, up from N1.28 trillion in 2023.
- Although the volume of gold remained unchanged at 687,402 troy ounces, the increase in value was driven by a sharp rise in global gold prices.
- The value of gold holdings has continued to rise, with prices now surpassing $5,000 per ounce.
The surge in gold reserves reflects a broader global trend, as central banks have been increasing their gold purchases amid concerns about inflation, currency volatility, and economic instability.
More insights
Cardoso highlighted that the CBN’s recent workshop on maximizing the economic benefits of Nigeria’s mineral resources aimed to engage key players in the gold sector, deepen understanding of industry challenges, and explore opportunities across the value chain.
- “Gold has regained importance as a hedge against inflation and volatility, while other critical minerals are increasingly shaping global supply chains and advanced industrial development,” Cardoso said.
He emphasized that Nigeria’s vast natural and human resource potential could only be fully realized through prudent management, strategic coordination, and long-term planning.
Other reactions
Several industry leaders also commented on the significance of Nigeria’s move.
- Hajiya Fatima Umaru Shinkafi, Executive Secretary of SMDF, praised the successful delivery of LBMA-standard gold, noting the strength of the SMDF’s formalization framework and supply chain due diligence processes.
- Ms. Kurtulus Taskale Diamond opoulos, Director of Central Banks and Public Policy at the World Gold Council, commended the CBN and SMDF for aligning the NGPP with responsible artisanal and small-scale gold sourcing principles.
- Mr. Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC), reaffirmed AFC’s commitment to supporting the formalization of Nigeria’s mineral sector.
- Ms. Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, emphasized the need for greater investment in exploration and transparency to build Nigeria’s strategic gold reserves.
What you should know
The World Gold Council forecasts gold prices to continue rising in 2026, projecting a surge of 15-30% due to geopolitical and economic uncertainty, as well as a weakening US dollar.
In 2025, gold recorded a standout performance, with over 50 all-time highs and returns exceeding 60%.
This strong performance underscores gold’s growing importance as a safe-haven asset in times of global economic and geopolitical volatility.
