The Central Bank of Nigeria (CBN) says its gold reserves have increased to $3.5 billion, following the delivery of “responsibly sourced” gold refined to London Bullion Market Association (LBMA) Good Delivery standards.
In a statement on Wednesday, the apex bank said the gold was
sourced locally and acquired under the national gold purchase programme (NGPP)
as part of efforts to diversify Nigeria’s foreign reserves.
The development comes amid a sustained rally that has seen
gold price surge to over $5,000 per ounce.
The regulator said the gold was aggregated by the solid
minerals development fund (SMDF), which involves artisanal and small-scale
miners operating 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 workshop on strategies to maximise the
economic benefits of minerals in Nigeria, Olayemi Cardoso, governor of the CBN,
said the apex bank acquired the monetary-grade gold in naira at prices linked
to LBMA benchmarks.
He said the structure was designed to preserve Nigeria’s
foreign exchange (FX) holdings while strengthening the nation’s gold reserves.
“By purchasing domestically refined gold without deploying
foreign currency, the transaction enhances reserve accretion and supports
broader macroeconomic stability objectives,” the economist said.
Cardoso said global reserve management strategies are
shifting amid rising economic uncertainties, with gold regaining prominence as
a hedge against inflation and volatility.
The CBN governor added that the domestic gold purchase
programme forms part of the CBN’s broader strategy to enhance reserve quality
and reduce external vulnerabilities.
DELIVERY GOLD DEMONSTRATES STRENGTH OF CBN’S FORMALISATION
FRAMEWORK
On her part, Fatima Umaru, executive secretary of SMDF, said
the successful delivery of LBMA-standard gold demonstrates the strength of the
organisation’s formalisation framework and supply chain due diligence
processes.
Also speaking, Kurtuluş Diamondopoulos, director of central
banks and public policy at the World Gold Council, commended the CBN and SMDF
for designing the NGPP in line with the 12 London principles for responsible
artisanal and small-scale gold sourcing.
She said the partnership between the CBN as sole off-taker
and SMDF as fiscal and supply-chain manager offers a model for other countries
seeking to formalise gold purchases.
Samaila Zubairu, president and chief executive officer of
the Africa Finance Corporation (AFC), reaffirmed the institution’s commitment
to financing and formalising Nigeria’s mineral sector.
He stressed the importance of reliable data and mineral
processing infrastructure to attract investment, improve gold recovery, reduce
environmental impact and support central bank purchases.
Also speaking, Nere Emiko, executive vice-chairman of Kian
Smith Gold Company, called for greater investment in exploration and
transparency, noting that Nigeria’s gold reserve levels remain low relative to
peers.
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