CBN boosts gold reserves to $3.5bn with locally refined bullion, strengthening diversification and Nigeria’s external buffers

The Central Bank of Nigeria on Wednesday confirmed it had taken delivery of domestically sourced gold refined to international standards into Nigeria’s foreign reserves, lifting total gold holdings to about $3.5bn.

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In a statement, the apex bank said the bullion was refined to the London Bullion Market Association Good Delivery standards, describing the move as a significant milestone in its reserve diversification strategy.

The Central Bank of Nigeria said the gold was sourced locally and aggregated by the Solid Minerals Development Fund through the National Gold Purchase Programme.

According to the statement, the programme works with local miners under a responsible sourcing framework aligned with the Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council London Principles.

Speaking at a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria held on February 27, 2026, Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, said the monetary authority purchased the gold in naira at prices linked to London Bullion Market Association benchmarks.

Olayemi Cardoso explained that the structure allows the bank to build reserves without deploying foreign currency, while strengthening Nigeria’s gold holdings and improving the overall quality of its external assets.

Olayemi Cardoso said the approach supports macroeconomic stability objectives and reflects a broader global shift in reserve management, where central banks are increasingly turning to gold as a hedge against inflation and geopolitical risks.

The initiative, he added, enables Nigeria to reinforce its reserve buffers while supporting the formalisation and growth of the domestic mining sector.

The workshop, organised by the Central Bank of Nigeria’s Corporate Secretariat and Reserve Management Departments, brought together stakeholders across the gold value chain to deepen engagement on sectoral opportunities and challenges.

Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, said the successful delivery of London Bullion Market Association-standard gold demonstrated the strength of the fund’s formalisation framework and supply chain due diligence processes.

Director of Central Banks and Public Policy at the World Gold Council, Ms Kurtulus Taskale-Diamondopoulos, commended the Central Bank of Nigeria and the Solid Minerals Development Fund for designing the Nigerian Gold Purchase Programme in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.

President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the corporation’s commitment to supporting the development and formalisation of Nigeria’s mineral sector, stressing the need for accurate geological data and stronger processing infrastructure to attract investment and improve recovery rates.

Executive Vice Chairman of Kian Smith Gold Company, Ms Nere Emiko, called for increased investment in exploration and enhanced transparency across the sector, noting that Nigeria’s gold reserves remain modest compared with several peer economies.

The Central Bank of Nigeria said the Domestic Gold Purchase Programme forms part of a broader strategy to enhance reserve quality, reduce external vulnerabilities and position mineral resources as a pillar of long-term economic resilience.

Olayemi Cardoso had earlier disclosed that Nigeria’s net foreign exchange reserves rose to $34.80bn at the end of 2025, up sharply from $3.99bn at the end of 2023, signalling what he described as a powerful strengthening of the country’s external buffers.

Net reserves increased from $23.11bn at the end of 2024 to $34.80bn at the end of 2025, while gross external reserves climbed to $45.71bn from $40.19bn over the same period.

As of February 16, 2026, Nigeria’s gross external reserves stood at $50.45bn.

Gross reserves represent the total stock of foreign assets held by the Central Bank of Nigeria, including foreign currencies, gold and other external assets.

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Net reserves exclude short-term liabilities and obligations, offering a clearer measure of funds readily available to defend the naira and meet external commitments.