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Nigeria Boosts Foreign Reserves as CBN Receives $3.5bn Worth of LBMA-Standard Gold
Nigeria’s Central Bank says locally sourced gold refined to London Bullion Market Association standards has been added to its reserves as part of diversification efforts.
The Central Bank of Nigeria (CBN) has incorporated locally sourced gold refined to international standards into the country’s foreign reserves, raising its gold holdings to approximately $3.5 billion.
The gold, refined to London Bullion Market Association (LBMA) Good Delivery standards, was sourced domestically and aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP).
The initiative integrates local miners and adheres to responsible sourcing frameworks based on the guidelines of the Organisation for Economic Co-operation and Development (OECD) and the World Gold Council.
Speaking during a one-day workshop on strategies to maximise the economic benefits of Nigeria’s minerals, CBN Governor Olayemi Cardoso said the gold was purchased in naira at prices linked to LBMA benchmarks, helping to preserve Nigeria’s foreign exchange reserves.
“By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” he said.
Cardoso explained that many central banks are increasingly turning to gold to strengthen economic resilience amid geopolitical and market uncertainties.
He stressed that the workshop served as a platform for engagement with stakeholders across the gold industry to better understand the sector’s opportunities and challenges.
“Nigeria’s immense natural and human resource potential can only be fully realised through prudence, strategic coordination, and long-term planning,” he added.
The Executive Secretary of the SMDF, Fatima Umaru Shinkafi, said the delivery of LBMA-standard gold confirmed the effectiveness of the organisation’s supply chain due diligence framework.
Meanwhile, the World Gold Council’s director for central banks and public policy, Kurtulus Taskale Diamondopoulos, praised the structure of the Nigerian Gold Purchase Programme, saying it provides a model for other countries seeking to formalise artisanal gold sourcing.
The President and CEO of the Africa Finance Corporation, Samaila Zubairu, also reiterated AFC’s commitment to supporting investment in Nigeria’s mining industry.
Additionally, Nere Emiko of Kian Smith Gold Company urged Nigeria to expand its strategic gold reserves and strengthen commodity exchanges to boost transparency and investment.
The programme forms part of the CBN’s wider strategy to strengthen reserve quality, reduce dependence on external markets and leverage Nigeria’s mineral resources for long-term economic stability.
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