Central Bank of Nigeria Receives Locally Sourced LBMA-Standard Gold into Foreign Reserves … Cardoso Advocates Reforms to Unlock Nigeria’s Mineral Potential
Oru Leonard
February 27, 2026 – The Central Bank of Nigeria (CBN) has taken delivery of responsibly sourced gold refined to London Bullion Market Association (LBMA), Good Delivery standards into its foreign reserves, raising its total gold holdings to $3.5 billion in a significant boost to its reserve diversification strategy.
The gold, sourced locally, was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP). The initiative engages artisanal and small-scale miners within a 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.
Speaking at a one-day Workshop on Strategies to Maximise the Economic Benefits of Minerals in Nigeria, the Governor of the CBN, Olayemi Cardoso, disclosed that the apex bank acquired the monetary-grade gold in naira at pricing linked to LBMA benchmarks. He explained that the structure was designed to preserve Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves.
By purchasing domestically refined gold without deploying foreign currency, Cardoso noted, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives.
He highlighted evolving global reserve management strategies amid rising geopolitical and economic uncertainties, noting that gold has regained prominence as a hedge against inflation and market volatility. He also pointed to the growing role of critical minerals in shaping global supply chains and advanced industrial development.
According to Cardoso, the workshop—convened by the CBN’s Corporate Secretariat and Reserve Management Departments—provided a structured platform to engage stakeholders across the gold value chain and deepen understanding of industry opportunities and challenges.
He stressed that Nigeria’s vast mineral wealth and human capital can only be fully harnessed through prudent policy coordination, long-term planning, and strict adherence to internationally recognised standards. Institutional credibility, he added, depends on strong governance frameworks and responsible resource management.
The development marks a notable step in Nigeria’s efforts to diversify its reserves, strengthen economic resilience, and unlock the full potential of its mineral sector.
