Solid Minerals Development Fund (SMDF) has announced the successful delivery of additional responsibly sourced gold refined to London Bullion Market Association (LBMA) good delivery standards to the Central Bank of Nigeria (CBN), boosting the nation’s total gold reserves to approximately $3.5 billion.
The Executive Secretary of SMDF, Fatima Shinkafi, disclosed during a recent one-day workshop titled “Strategies to Maximise the Economic Benefits of Minerals in Nigeria.”
The development marks a significant impact, promoting Nigeria’s gold as being globally tradable and reinforcing the nation’s credibility in the international bullion market.
According to the statement on Thursday by Idowu Jokpeyibo, Head, Corporate Communications SMDF, Ms Shinkafi said the delivery validates the strength of the SMDF’s formalisation framework and supply-chain due diligence processes under the National Gold Purchase Programme (NGPP).
She noted that the programme continues to demonstrate Nigeria’s capacity to responsibly harness its mineral resources for national economic benefit, and pointed out that Nigeria launched this gold purchase initiative ahead of Ghana gold bullion and other countries, positioning the nation as a regional leader in responsible gold reserve management.
The gold was sourced locally and aggregated by the SMDF through the NGPP, which engages artisanal and small-scale miners within a robust 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.
In his remarks, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, noted that the monetary-grade gold was acquired using Naira, with pricing linked to LBMA benchmarks.
He explained that the structure preserves Nigeria’s foreign exchange while strengthening the country’s gold reserves.
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According to him, purchasing domestically refined gold without deploying foreign currency enhances reserve accretion and supports broader macroeconomic stability objectives, particularly amid heightened global economic uncertainty.
He added that central banks globally 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.
Mr Cardoso described the workshop as a demonstration of Nigeria’s shared commitment to the responsible and strategic management of its mineral resources, stressing the importance of diversification, prudent governance, and resilience in an evolving global economy.
The World Gold Council’s Director of Central Banks and Public Policy, Ms Kurtuluş Taşkale Diamondopoulos, commended 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.
Launched in 2020, the National Gold Purchase Programme remains active, with the CBN consistently purchasing locally sourced and responsibly refined gold to build reserves, reduce reliance on foreign exchange, and strengthen Nigeria’s external reserve position.
