The Central Bank of Nigeria has increased its gold holdings to $3.5 billion, acquiring London Bullion Market Association (LBMA)‑standard gold as part of a strategic move to diversify and strengthen Nigeria’s foreign reserves, according to Independent Nigeria.
The gold was sourced locally through the Solid Minerals Development Fund under the National Gold Purchase Programme (NGPP) and refined to meet LBMA Good Delivery standards. BusinessDay Nigeria cited that the purchases were made in naira at internationally benchmarked prices, enabling the bank to bolster its reserves without expending foreign currency.
This initiative is part of a broader reserve diversification strategy, with gold serving as a hedge against currency volatility, inflation, and external shocks. NewsVerge highlighted that using locally refined bullion strengthens the quality and resilience of Nigeria’s reserve assets while supporting the domestic gold sector.
In addition to enhancing external buffers, the programme formalizes the gold value chain by engaging artisanal and small-scale miners within a responsible sourcing framework aligned with OECD due diligence guidelines and the World Gold Council’s London Principles. Analysts note that this approach integrates domestic mineral wealth into macroeconomic management, reinforcing long-term financial stability.
Image Credit: goldture.com
