The Central Bank of Nigeria (CBN) has received a new batch of locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards, adding it to the country’s foreign reserves. 

According to a statement on Wednesday by the bank, this brings Nigeria’s total gold holdings to $3.5 billion, in a key move towards diversifying its reserves.

The gold was supplied through the National Gold Purchase Programme (NGPP), managed by the Solid Minerals Development Fund (SMDF). 

The programme brings together local miners and according to the bank, follows strict responsible sourcing rules, in line with OECD Due Diligence Guidelines and the World Gold Council’s London Principles. 

The CBN said it bought the gold in naira, using prices linked to LBMA benchmarks. This approach avoids using foreign currency for the purchase, helping to build reserves while supporting economic stability.

CBN Governor Olayemi Cardoso announced the development at a workshop on Friday, focused on maximising the economic benefits of Nigeria’s minerals. 

He stressed that global uncertainties made gold more important as a hedge against inflation and market swings. 

Mr Cardoso called for strong governance, adherence to international standards, and better coordination to unlock Nigeria’s vast mineral potential. 

He described the NGPP as a model that shows Nigeria’s commitment to responsible resource management.

He also explained that the session, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, was designed to create a structured platform for engagement with key players in the gold sector and to deepen understanding of the industry’s current landscape, opportunities, and challenges across its value chain.

Speakers at the event, the SMDF’s Executive Secretary, Fatima Shinkafi; the World Gold Council’s Director of Central Banks and Public Policy, Kurtulus Diamondopoulos; the President and CEO of the Africa Finance Corporation (AFC), Samaila Zubairu; and the Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, all  praised the programme. 

They noted it sets an example for other countries by combining formal supply chains with central bank purchases. 

The industry experts also urged more investment in exploration, processing, and transparency to grow Nigeria’s strategic reserves.

This step by the CBN fits into the recent trend across Africa, where several central banks have turned to gold in recent years to strengthen reserves amid global economic pressures and high gold prices. 

Countries such as Egypt, Kenya, Rwanda, Namibia, and Tanzania have increased or planned gold purchases to diversify from reliance on foreign currencies and to build buffers against volatility. 

Egypt led African buyers in 2025, while others like Tanzania used domestic programmes similar to Nigeria’s. 

Although overall central bank gold buying slowed slightly in 2025 from record levels in prior years, African nations have shown growing interest in using local gold to support monetary resilience.

For Nigeria, the new trend means stronger foreign reserves without draining scarce dollars, reduced exposure to external shocks, and a boost for the domestic mining sector through formal channels. 

It could encourage more local refining and mining investment, create jobs, and help stabilise the economy over time. 

Nigeria building its own gold holdings responsibly could be positioning itself better in an uncertain global environment where gold serves as a reliable store of value.