By Boluwatife Oshadiya | March 5, 2026
Key Points
- CBN increases gold reserves to $3.5 billion through locally sourced bullion purchases
- Gold refined to London Bullion Market Association Good Delivery standards
- Programme aims to diversify Nigeria’s external reserves and reduce FX exposure
Main Story
The Central Bank of Nigeria (CBN) has increased its gold reserves to $3.5 billion after taking delivery of newly refined bullion sourced domestically under the country’s National Gold Purchase Programme (NGPP).
The apex bank confirmed the development in a statement on Wednesday, noting that the gold meets London Bullion Market Association (LBMA) Good Delivery standards, the global benchmark for high-quality gold traded in international markets.
According to the CBN, the bullion was aggregated by the Solid Minerals Development Fund (SMDF) through the NGPP, a programme designed to formalise artisanal mining and channel domestically produced gold into Nigeria’s official reserves.
CBN Governor Olayemi Cardoso said the monetary authority acquired the gold in naira, using a pricing structure linked to international LBMA benchmarks.
The arrangement allows Nigeria to accumulate reserve assets without depleting foreign currency holdings.
The central bank said the initiative forms part of a broader strategy to diversify reserve assets, strengthen financial resilience, and reduce vulnerability to external shocks.
Global central banks have increasingly increased gold purchases in recent years as geopolitical tensions and financial market volatility prompt policymakers to seek stable reserve assets.
Nigeria’s move also aligns with efforts to formalise the country’s largely informal gold mining sector, which has historically suffered from limited regulation, smuggling, and weak integration with the formal economy.
What’s Being Said
“Purchasing domestically refined gold without using foreign currency enhances reserve accretion and supports broader macroeconomic stability objectives,” said Olayemi Cardoso, Governor, Central Bank of Nigeria.
SMDF Executive Secretary Fatima Shinkafi described the milestone as validation of the programme’s supply chain oversight.
“The successful delivery of LBMA-standard gold demonstrates the strength of our formalisation framework and due diligence processes,” she said.
Meanwhile, Kurtulus Diamondopoulos, Director of Central Banks and Public Policy at the World Gold Council, commended the programme’s design.
“The Nigerian Gold Purchase Programme aligns with the twelve London Principles for responsible artisanal and small-scale gold sourcing,” she said.
What’s Next
- The CBN is expected to continue expanding purchases under the Domestic Gold Purchase Programme
- Policymakers are seeking additional investment in mineral processing infrastructure and exploration
- Nigeria’s gold strategy may become a key pillar in reserve diversification and mineral sector development
 has increased its gold reserves to $3.5 billion after taking delivery of newly refined bullion sourced domestically under the country’s National Gold Purchase Programme (NGPP).){kind=link}