Nigeria’s gold reserves now $3.5bn – CBN

The Central Bank of Nigeria (CBN) says its gold reserves have risen to $3.5 billion after receiving newly refined gold that meets London Bullion Market Association (LBMA) Good Delivery standards.

In a statement on Wednesday, March 4, the apex bank said the gold was sourced locally and acquired under the national gold purchase programme as part of efforts to diversify Nigeria’s foreign reserves. The development comes amid a strong rally in the global market that has pushed gold prices above $5,000 per ounce.

According to the CBN, the gold was aggregated by the Solid Minerals Development Fund (SMDF), working with artisanal and small-scale miners operating under a responsible sourcing framework aligned with the guidelines of the Organisation for Economic Co-operation and Development and the World Gold Council’s London Principles.

Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, the CBN governor Olayemi Cardoso said the central bank purchased the monetary-grade gold in naira using prices linked to LBMA benchmarks.

He explained that the structure allows Nigeria to strengthen its reserves without drawing on foreign currency. “By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” he said.

Cardoso added that global reserve management strategies are evolving as economic uncertainty grows, with gold regaining prominence as a hedge against inflation and financial volatility. He said the domestic gold purchase programme forms part of the CBN’s broader strategy to improve the quality of Nigeria’s reserves and reduce external vulnerabilities.

Also speaking at the event, Fatima Umaru, executive secretary of the SMDF, said the delivery of LBMA-standard gold demonstrates the effectiveness of the organisation’s formalisation framework and supply chain due diligence process.

Kurtuluş Diamondopoulos, director of central banks and public policy at the World Gold Council, commended the collaboration between the CBN and SMDF, noting that the national gold purchase programme aligns with the 12 London principles for responsible artisanal and small-scale gold sourcing.

She said the partnership between the CBN as sole off-taker and SMDF as fiscal and supply-chain manager provides a potential model for other countries seeking to formalise gold purchases from small-scale mining operations.

Meanwhile, Samaila Zubairu, president and chief executive officer of the Africa Finance Corporation, reiterated the institution’s commitment to supporting the development and formalisation of Nigeria’s mineral sector.

He emphasised the importance of reliable geological data and improved mineral processing infrastructure to attract investment, boost gold recovery rates, reduce environmental damage and support central bank purchases.

Nere Emiko, executive vice-chairman of Kian Smith Gold Company, also called for increased investment in exploration and greater transparency in the sector, noting that Nigeria’s gold reserves remain relatively low compared to those of peer economies.