Lagos: The Central Bank of Nigeria has added $3.5 billion worth of responsibly sourced gold, refined toLondon Bullion Market Association (LBMA) Good Delivery standards, into its foreign reserves — marking a strategic shift toward local resource utilisation and diversification.
The gold, sourced in Nigeria, was aggregated by the Solid Minerals Development Fund (SMDF) through the National Gold Purchase Programme (NGPP), a government-led initiative to buy domestically produced gold.
The programme involves local miners and operates within a responsible sourcing framework aligned with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
Speaking at a recent workshop on Strategies to Maximise the Economic Benefits of Minerals in Nigeria, CBN Governor, Mr Olayemi Cardoso, said that the CBN acquired the monetary-grade gold in Naira.
Cardoso, the gold was acquired at LBMA-linked prices, a structure meant to preserve Nigeria’s foreign exchange and strengthen national gold reserves.
He said the CBN purchased domestically refined gold without using foreign currency. This transaction enhances reserve accretion and supports broader macroeconomic stability objectives.
He noted major shifts in global reserve strategies amid increasing economic uncertainties.
Cardoso called the event a reflection of Nigeria’s commitment to responsible resource management.
He said the workshop emphasised Nigeria’s readiness to adapt to an evolving global economy. In this new world, resilience, diversification, and prudent governance are increasingly important.
He further said the session was convened by the CBN’s Corporate Secretariat and Reserve Management Departments. It aimed to create a platform for engagement with key players in the gold sector.
The CBN governor said the session aimed to deepen understanding of the industry’s current landscape. It also sought to highlight opportunities and challenges across its value chain.
He noted central banks worldwide are prioritising resilience amid ongoing uncertainties.
He said gold has regained importance as a hedge against inflation and volatility. Other critical minerals are also shaping global supply chains and advanced industrial development.
Cardoso said Nigeria’s resource potential requires prudence, coordination, and strategic planning.
He stressed adherence to international standards, noting institutional credibility relies on strong governance.
Hajiya Fatima Shinkafi, SMDF Executive Secretary, said LBMA gold delivery shows the strength of their formalisation and due diligence.
Kurtulus Diamondopoulos of the World Gold Council praised CBN and SMDF for the design of the Nigerian Gold Purchase Programme.
Diamondopoulos acknowledged that the NGPP was designed in line with the twelve London Principles, which set ethical and practical standards for the responsible sourcing of gold from artisan and small-scale miners.
She said that the partnership between the CBN, as the sole off-taker, and the SMDF, as the fiscal and supply chain manager, offered a strong model for other countries seeking to strengthen similar programmes.
Samaila Zubairu, President/CEO of AFC, reaffirmed AFC’s commitment to financing and formalising Nigeria’s mineral sector.
He stressed the importance of accurate data and mineral processing infrastructure. These are crucial to attract investment, improve gold recovery, reduce environmental impact, and support central bank purchases.
Nere Emiko, Vice Chairman of Kian Smith Gold Company, urged Nigeria to build gold reserves and leverage commodity exchanges.
Emiko noted low reserve levels and urged more investment in exploration and transparency.
The Domestic Gold Purchase Programme is part of CBN’s strategy to enhance reserves, reduce vulnerability, and make minerals a foundation for economic stability.
