Central Bank of Nigeria Bolsters National Foreign Reserves With $3.5 Billion Gold Acquisition via Domestic Purchase Program

Central Bank of Nigeria adds $3.5bn in gold to foreign reserves. Learn how the National Gold Purchase Programme uses local mining to stabilize the economy.

By: AXL Media

Published: Mar 4, 2026, 11:08 AM EST

Source: The information in this article was sourced from The Sun Nigeria

A Strategic Shift in National Reserve Management

The Central Bank of Nigeria has achieved a landmark milestone in its effort to diversify the nation’s wealth by integrating $3.5 billion worth of gold into its foreign reserves. This infusion of precious metal marks a significant pivot in the country's reserve management strategy, prioritizing tangible assets over traditional currency holdings. According to CBN Governor Olayemi Cardoso, the gold was refined to meet the stringent Good Delivery standards of the London Bullion Market Association (LBMA), ensuring that the asset is of monetary-grade quality. This development is part of a broader mission to bolster the quality of Nigeria's reserves and provide a more robust cushion against the volatility of the global financial landscape.

Leveraging Domestic Resources for Economic Stability

A critical component of this acquisition is the utilization of the National Gold Purchase Programme (NGPP), which allows the CBN to purchase gold using the local currency. By acquiring the gold in naira at prices linked to international LBMA benchmarks, the apex bank has successfully increased its reserve accretion without the need to deplete its existing foreign exchange supplies. According to Cardoso, this specific structure is designed to support broader macroeconomic stability objectives while strengthening the national balance sheet. The gold was aggregated by the Solid Minerals Development Fund (SMDF), a body tasked with formalizing artisanal mining and ensuring that the sourcing process adheres to global best practices.

The Role of Formalization in Mineral Wealth

The success of this reserve boost is deeply rooted in the formalization of Nigeria’s artisanal and small-scale mining sectors. Fatima Shinkafi, Executive Secretary of the SMDF, emphasized that the delivery of LBMA-standard gold is a direct reflection of the agency's rigorous supply chain due diligence and formalization framework. This partnership between the CBN as the sole off-taker and the SMDF as the supply chain manager has drawn international praise for its transparency and adherence to ethical standards. According to Shinkafi, this model not only secures valuable assets for the state but also brings previously informal economic activity into a structured, regulated environment that benefits the entire national economy.