The Solid Minerals Development Fund has strengthened Nigeria’s reserve diversification strategy after supplying additional locally sourced gold refined to international standards to the Central Bank of Nigeria under the National Gold Purchase Programme.
The delivery, coordinated by the Solid Minerals Development Fund, contributes to Nigeria’s growing gold holdings estimated at $3.5 billion and underscores the Fund’s expanding role in formalising the country’s artisanal mining sector and integrating it into global value chains.
Fatima Umaru Shinkafi, executive secretary, Solid Minerals Development Fund, SMDF, said the gold was sourced through the National Gold Purchase Programme and refined to the good delivery standards of the London Bullion Market Association before being delivered to the Central Bank of Nigeria.
Shinkafi disclosed this at a stakeholders’ workshop in Abuja on strategies to maximise the economic value of Nigeria’s mineral resources.
She explained that the delivery highlights the effectiveness of the formalisation framework driven by the SMDF to integrate artisanal and small-scale miners into a responsible supply chain.
According to her, the programme promotes traceability, responsible sourcing and greater value retention from Nigeria’s gold resources.
Shinkafi noted that Nigeria moved early to introduce the gold purchase initiative ahead of similar efforts in several African countries, positioning the country to play a stronger role in responsible gold reserve management across the continent.
The gold supplied to the apex bank was aggregated locally through the National Gold Purchase Programme, which works with artisanal and small-scale miners under sourcing standards aligned with due diligence guidelines of the Organisation for Economic Co‑operation and Development and responsible sourcing principles of the World Gold Council.
Olayemi Cardoso, governor, Central Bank of Nigeria, CBN, said the monetary grade gold was acquired using naira, with pricing benchmarked to international standards set by the London Bullion Market Association.
He said the structure allows the central bank to expand Nigeria’s gold reserves without deploying foreign exchange.
Cardoso explained that purchasing domestically refined gold using local currency helps preserve the country’s foreign exchange buffers while supporting reserve growth.
He added that the approach aligns with global trends where central banks are increasingly diversifying reserve assets amid geopolitical tensions and volatility in international financial markets.
Gold, he said, is regaining prominence among reserve managers worldwide as a hedge against inflation, currency fluctuations and systemic risks.
Kurtuluş Taşkale Diamondopoulos, director, central banks and public policy, World Gold Council, commended the Central Bank of Nigeria and the Solid Minerals Development Fund for implementing the Nigerian Gold Purchase Programme in line with the twelve London Principles governing responsible sourcing of artisanal and small-scale gold.
The workshop, convened by the Central Bank’s corporate secretariat and reserve management departments, brought together regulators, miners and industry stakeholders to examine opportunities and challenges across Nigeria’s gold value chain.
Launched in 2020, the National Gold Purchase Programme allows the Central Bank of Nigeria to purchase locally sourced gold refined to international standards as part of broader efforts to diversify reserve assets, reduce reliance on foreign exchange and strengthen the country’s external reserves.
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