Nigeria’s external reserve profile has received a notable boost following the addition of domestically refined gold to the country’s foreign reserves, with the Central Bank of Nigeria (CBN) confirming that its total gold holdings have now reached approximately $3.5bn.
The apex bank disclosed this development in a statement on Wednesday, noting that the gold added to the reserves was refined to the internationally recognised London Bullion Market Association (LBMA) Good Delivery standards, a benchmark widely accepted in global bullion markets.
According to the bank, the move represents a strategic step toward strengthening Nigeria’s reserve portfolio while reducing dependence on traditional foreign exchange assets.
CBN Gold Holdings Rise to $3.5bn Through Domestic Sourcing
The development that CBN gold holdings rise to $3.5bn reflects the increasing role of locally sourced minerals in Nigeria’s reserve management strategy.
The central bank said the gold was sourced domestically and aggregated through the Solid Minerals Development Fund under the National Gold Purchase Programme.
The initiative works closely with artisanal and small-scale miners across the country to ensure responsible sourcing and compliance with global supply chain standards.
Officials explained that the programme aligns with internationally recognised frameworks such as the Organisation for Economic Co-operation and Development due diligence guidelines and the responsible sourcing principles promoted by the World Gold Council.
By integrating locally mined gold into its reserve assets, the central bank aims to enhance the quality and resilience of Nigeria’s foreign reserves while simultaneously supporting the domestic mining industry.
Cardoso Highlights Strategy Behind Gold Purchases
Speaking at a workshop on strategies to maximise the economic value of Nigeria’s mineral resources, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the monetary authority purchased the gold in naira at prices benchmarked against global LBMA rates.
According to him, this structure allows the bank to accumulate reserve assets without spending scarce foreign currency, thereby preserving external liquidity.
Cardoso noted that the initiative aligns with broader macroeconomic stability goals, particularly in an environment characterised by inflationary pressures, currency volatility, and geopolitical uncertainties affecting global financial markets.
He explained that many central banks worldwide are increasingly turning to gold as a hedge against economic risks and financial instability.
“The purchase of locally refined gold allows the central bank to strengthen Nigeria’s external reserve buffers while supporting the development of the country’s mining sector,” Cardoso said.
Strengthening Nigeria’s External Reserves
Data released by the apex bank shows that Nigeria’s net foreign exchange reserves rose significantly in the past two years.
According to the CBN governor, net reserves climbed to $34.80bn at the end of 2025 from $23.11bn recorded in 2024. This represents a substantial increase from $3.99bn recorded at the end of 2023.
During the same period, gross external reserves increased from $40.19bn to $45.71bn, reflecting a $5.52bn rise in total reserve assets.
As of February 16, 2026, Nigeria’s gross external reserves had climbed further to $50.45bn, indicating continued improvements in the country’s external financial position.
Economic analysts note that stronger reserves provide the central bank with greater capacity to defend the naira, stabilise the foreign exchange market, and meet international financial obligations.
Stakeholders Back Nigeria’s Gold Programme
Industry stakeholders have also commended the structure of the National Gold Purchase Programme, describing it as a model that could transform the country’s largely informal mining sector.
The Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, said the successful delivery of LBMA-standard gold highlights the effectiveness of the programme’s due diligence and supply chain verification framework.
Similarly, the Director for Central Banks and Public Policy at the World Gold Council, Kurtulus Taskale-Diamondopoulos, praised the partnership between the CBN and the Solid Minerals Development Fund.
She noted that the Nigerian model — where the central bank acts as the sole off-taker while the SMDF manages the supply chain — could serve as a template for other emerging economies seeking to formalise artisanal gold mining.
Also speaking at the workshop, the President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, emphasised the need for stronger geological data, improved mineral processing infrastructure, and greater transparency to unlock Nigeria’s mineral wealth.
He argued that better investment in exploration and processing facilities would improve gold recovery rates, reduce environmental damage, and strengthen the country’s ability to build strategic gold reserves.
The Executive Vice Chairman of Kian Smith Gold Company, Nere Emiko, also called for increased investment across the sector, stressing that Nigeria’s gold reserves remain relatively small compared to those of several peer countries.
Gold’s Growing Role in Global Reserve Management
The CBN noted that the Domestic Gold Purchase Programme forms part of its broader strategy to improve the composition and resilience of Nigeria’s reserves.
Gold has increasingly regained prominence in global reserve management as central banks seek to diversify away from traditional assets such as the US dollar and other foreign currencies.
Financial experts say gold offers a reliable store of value during periods of economic uncertainty and geopolitical tensions, making it an important hedge in modern reserve portfolios.
For Nigeria, the integration of domestically refined gold into its reserves represents both an economic and strategic milestone.
By linking the mining sector with monetary policy objectives, policymakers hope to unlock new sources of national wealth while strengthening the country’s external financial buffers.
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