The Central Bank of Nigeria (CBN) has taken delivery of responsibly sourced gold refined to London Bullion Market Association Good Delivery standards into its foreign reserves, raising its total gold holdings to $3.5 billion in a move that underscores its reserve diversification strategy.

The gold, sourced locally, was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme (NGPP), an initiative designed to formalise artisanal and small-scale mining while ensuring compliance with global responsible sourcing benchmarks.

According to the apex bank, the inclusion of the LBMA-standard gold in Nigeria’s external reserves marks a significant milestone in its efforts to strengthen the country’s reserve assets through increased exposure to bullion.

The SMDF said the gold was refined to meet the standards of the London Bullion Market Association (LBMA), widely regarded as the global authority on precious metals trading and standards.

Speaking on the development, the executive secretary of SMDF, Hajiya Fatima Umaru Shinkafi, described the successful delivery as proof of the strength of the fund’s formalisation framework and supply chain due diligence processes.

She said the programme integrates local miners into a transparent value chain that aligns with international best practices, adding that the achievement demonstrates Nigeria’s capacity to produce gold that meets global market requirements.

Under the NGPP framework, gold sourcing operates in line with the Organisation for Economic Co-operation and Development Due Diligence Guidelines as well as the World Gold Council’s London Principles for responsible artisanal and small-scale gold mining.

The Director of Central Banks and Public Policy at the World Gold Council, Ms Kurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for structuring the NGPP in accordance with the twelve London Principles. She noted that aligning with internationally recognised responsible sourcing standards enhances credibility and investor confidence in Nigeria’s gold value chain.

Analysts say the development could strengthen Nigeria’s external reserves buffer while promoting formalisation in the mining sector, particularly among artisanal miners who account for a significant portion of the country’s gold output.

The latest addition signals a growing role for domestically sourced gold in Nigeria’s reserve management strategy, positioning the precious metal as a key asset in the country’s broader economic stability framework.

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