SMDF Hand Over LBMA-Grade Gold to CBN, Raising Nigeria’s Reserves to $3.5bn Without FX Outlay

SMDF’s responsible sourcing and LBMA-compliant gold delivery strengthens Nigeria’s mineral formalisation framework and positions the country as a regional leader in gold reserve management

Editor4 weeks ago

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L-R: The Governor of Central, Mr. Olayemi Cardoso and the Executive Secretary, Solid Minerals Development Fund (SMDF), Hajia Fatima Umaru Shinkafi during the workshop.

By Fatima Saka

Nigeria’s gold reserves have risen to approximately $3.5 billion following the successful delivery of additional London Bullion Market Association (LBMA) Good Delivery-standard gold by the Solid Minerals Development Fund (SMDF) to the Central Bank of Nigeria (CBN).

The Executive Secretary of the SMDF, Hajiya Fatima Umaru Shinkafi, announced the milestone at a one-day workshop titled “Strategies to Maximise the Economic Benefits of Minerals in Nigeria,” stating that the delivery validates the strength of the agency’s formalisation framework and supply-chain due diligence processes under the National Gold Purchase Programme (NGPP).

According to a press statement signed by Idowu Jokpeyibo, Head of Corporate Communications at SMDF, the gold was responsibly sourced and refined to LBMA Good Delivery standards before being delivered to the apex bank. The bullion was aggregated locally through the NGPP, which 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.

Shinkafi noted that Nigeria launched its gold purchase initiative ahead of Ghana’s bullion programme and several other countries, positioning the nation as a regional leader in responsible gold reserve management. She added that the programme demonstrates Nigeria’s capacity to harness its mineral resources sustainably for national economic growth.

The Governor of the CBN, Mr. Olayemi Cardoso, disclosed that the monetary-grade gold was acquired using the Naira, with pricing linked to LBMA benchmarks. He explained that this structure preserves Nigeria’s foreign exchange while strengthening the country’s gold reserves.

According to Cardoso, purchasing domestically refined gold without deploying foreign currency enhances reserve accretion and supports macroeconomic stability, particularly amid heightened global economic uncertainty. He observed that central banks worldwide are increasingly diversifying their reserves in response to geopolitical tensions and market volatility, with gold regaining prominence as a hedge against inflation and systemic risks.

The governor described the workshop as a reflection of Nigeria’s collective commitment to responsible and strategic mineral resource management, underscoring the importance of diversification, prudent governance and economic resilience.

Also speaking, the World Gold Council’s Director of Central Banks and Public Policy, Ms. Kurtuluş Taşkale Diamondopoulos, commended both the CBN and SMDF for implementing the Nigerian Gold Purchase Programme in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.

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The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, brought together key stakeholders across the gold value chain to examine strategies for maximising economic returns from Nigeria’s mineral wealth.

Launched in 2020, the National Gold Purchase Programme remains active, with the CBN continuing to purchase locally sourced and responsibly refined gold as part of efforts to deepen external reserves, reduce reliance on foreign exchange, and bolster Nigeria’s overall economic stability.