By SUNDAY ABBA, Abuja
The executive secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, has announced the successful delivery of additional locally sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards to the Central Bank of Nigeria (CBN), boosting the nation’s total gold reserves to approximately $3.5 billion.
According to a statement signed by Idowu Jokpeyibo, Head, Corporate Communications, SMDF, Shinkafi while speaking recently at a one-day workshop titled: “Strategies to Maximise the Economic Benefits of Minerals in Nigeria”, said the delivery validates the strength of the SMDF’s formalisation framework and supply-chain due diligence processes under the National Gold Purchase Programme (NGPP).
She noted that the programme continues to demonstrate Nigeria’s capacity to responsibly harness its mineral resources for national economic benefit, and pointed out that Nigeria launched this gold purchase initiative ahead of the Ghana Gold Bullion and other countries, positioning the nation as a regional leader in responsible gold reserve management.
The gold was sourced locally and aggregated by the SMDF through the NGPP, which engages artisanal and small-scale miners within a robust 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.
The governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, disclosed that the monetary-grade gold was acquired using Naira, with pricing linked to LBMA benchmarks. He explained that the structure preserves Nigeria’s foreign exchange while strengthening the country’s gold reserves.
According to the governor, purchasing domestically refined gold without deploying foreign currency enhances reserve accretion and supports broader macroeconomic stability objectives, particularly amid heightened global economic uncertainty. He added that central banks globally are increasingly diversifying their reserves in response to geopolitical tensions and market volatility, with gold regaining prominence as a hedge against inflation and systemic risks.
Mr. Cardoso described the workshop as a demonstration of Nigeria’s shared commitment to the responsible and strategic management of its mineral resources, stressing the importance of diversification, prudent governance, and resilience in an evolving global economy.
In her remarks, the World Gold Council’s Director of Central Banks and Public Policy, Ms Kurtuluş Taşkale Diamondopoulos, commended the CBN and SMDF for implementing the Nigerian Gold Purchase Programme in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, provided a platform for engagement with key stakeholders across the gold value chain, highlighting opportunities and challenges in the sector.
Launched in 2020, the National Gold Purchase Programme remains active, with the CBN consistently purchasing locally sourced and responsibly refined gold to build reserves, reduce reliance on foreign exchange, and strengthen Nigeria’s external reserve position.