Nigeria’s foreign reserves received a notable addition as the Central Bank of Nigeria incorporated responsibly sourced gold refined to international standards, elevating its total gold holdings to $3.5 billion and advancing efforts to diversify away from traditional assets amid global economic shifts.
The move, part of an ongoing reserve diversification strategy, involves gold aggregated domestically by the Solid Minerals Development Fund through the National Gold Purchase Programme, which engages local miners under a responsible sourcing framework compliant with Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council’s London Principles.
Olayemi Cardoso, governor of the Central Bank of Nigeria, made the disclosure during a one-day workshop on strategies to maximise the economic benefits of minerals in Nigeria, held on February 27, 2026. He explained that the apex bank acquired the monetary-grade gold in naira, with pricing tied to London Bullion Market Association benchmarks, to avoid depleting foreign exchange while bolstering gold reserves.
“By purchasing domestically refined gold without deploying foreign currency, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives,” Cardoso stated.
He pointed to evolving global reserve management trends, driven by heightened economic uncertainties, and described the workshop as evidence of Nigeria’s dedication to prudent mineral resource management. Cardoso added that the event signals the country’s adaptability to a changing global economy, where resilience, diversification, and sound governance are essential.
The workshop, organised by the CBN’s Corporate Secretariat and Reserve Management Departments, aimed to foster dialogue with gold sector stakeholders and explore the industry’s landscape, opportunities, and challenges along its value chain.
Cardoso observed that central banks worldwide are emphasising economic resilience against geopolitical and market volatility. “Gold has regained importance as a hedge against inflation and volatility, while other critical minerals are increasingly shaping global supply chains and advanced industrial development,” he said.
He stressed that unlocking Nigeria’s vast natural and human resources requires prudence, coordination, and long-term planning, with adherence to international standards crucial for institutional credibility and governance.
Hajiya Fatima Umaru Shinkafi, executive secretary of the Solid Minerals Development Fund, noted that the delivery of LBMA-standard gold highlights the robustness of the fund’s formalisation framework and supply chain due-diligence processes.
Kurtulus Taskale Diamondopoulos, director of central banks and public policy at the World Gold Council, praised the CBN and SMDF for aligning the National Gold Purchase Programme with the twelve London Principles for responsible artisanal and small-scale gold sourcing. “The partnership between the CBN as sole off-taker and the SMDF as fiscal and supply-chain manager offers a strong model for other countries seeking to strengthen similar programmes,” she remarked.
Samaila Zubairu, president and CEO of the Africa Finance Corporation, reiterated the corporation’s support for financing and formalising Nigeria’s mineral sector, underscoring the need for reliable data and processing infrastructure to draw investment, boost gold recovery, minimise environmental harm, and facilitate central bank acquisitions.
Nere Emiko, executive vice chairman of Kian Smith Gold Company, highlighted the necessity for Nigeria to establish strategic gold reserves and utilise commodity exchanges, given the nation’s relatively low reserve levels compared to peers, and advocated for increased exploration funding and transparency.
The Domestic Gold Purchase Programme aligns with the CBN’s overarching approach to improve reserve quality, mitigate external risks, and establish Nigeria’s mineral resources as a foundation for enduring economic stability.
Nigeria’s engagement with gold as a reserve asset draws from a long history in the sector, where production dates back to 1913 following discoveries in northern provinces such as Zaria, Nupe, Kontagora, Niger, and Sokoto. Output began in 1914 at 350 ounces, peaking in the 1930s with an annual average of 20,000 ounces before declining during the Second World War. By the 1940s, significant deposits emerged in the western region around Ilesa, but post-war challenges and the dominance of oil led to stagnation. The Nigerian Mining Corporation, established in the early 1980s, aimed to revive exploration but faltered due to funding shortages and oil’s allure.
Artisanal and small-scale mining has dominated since, with estimates placing total gold output at 16.26 tonnes annually in the early 2020s, though much remains undeclared and smuggled, often to the United Arab Emirates via neighboring countries like Niger. Official figures for artisanal production in the 2010s were minimal, rarely exceeding tens of kilograms, but rose in the 2020s, reflecting improved state recording. Nigeria’s first industrial gold mine, Segilola in Osun State, commenced commercial production in 2021, producing 309 kilograms in its debut year and 3,048 kilograms in 2022, exported to Switzerland for refining.
The sector’s contribution to gross domestic product grew from under 0.5 percent a decade ago to about 1.8 percent by 2025, with ambitions to reach 3 percent, driven by reforms under the 2007 Nigerian Minerals and Mining Act and initiatives like the Presidential Artisanal Gold Mining Initiative. Proven reserves include 21.37 metric tons valued at $1 billion as of mid-2023, ranking Nigeria sixth in Africa for gold holdings. Challenges persist, including illegal mining by influential figures over four decades, environmental degradation, and banditry in the northwest, where deposits span granite, gypsum, and other minerals.
The National Gold Purchase Programme, launched in 2024 under the Tinubu administration as part of the Renewed Hope Agenda, marked its first commercial transaction in June 2024, adding over $5 million to reserves, refining 70 kilograms to LBMA standards, and injecting N6 billion into rural economies. It builds on the 2020 Presidential Artisanal Gold Mining Initiative, enabling the CBN to buy from miners in naira, formalising supply chains and reducing smuggling. The SMDF aggregates gold from decentralised artisanal networks, ensuring compliance, while the CBN acts as sole buyer.
This domestic focus mirrors global trends, where central banks accumulated over 1,000 tonnes of gold annually in the last three years, up from 400-500 tonnes previously, driven by crisis performance, diversification, and inflation hedging. Emerging markets lead purchases, with gold surpassing U.S. Treasuries in reserves by 2025 for the first time since 1996, reflecting geopolitical hedging and dollar diversification. Ninety-five percent of surveyed reserve managers expect global gold holdings to rise, with none anticipating declines. For Nigeria, this strategy reduces vulnerabilities, supports rural development, and positions minerals as a non-oil revenue pillar, though ongoing reforms must address data gaps, infrastructure needs, and security to sustain momentum.
