This latest acquisition brings Nigeria’s total gold holdings to $3.5 billion, marking a major milestone in the central bank’s reserve diversification strategy.

The gold was supplied through the National Gold Purchase Programme (NGPP), managed by the Solid Minerals Development Fund (SMDF). The programme engages local miners and operates under a responsible sourcing framework aligned with the OECD Due Diligence Guidelines and the World Gold Council’s London Principles.

CBN Governor Olayemi Cardoso explained that the monetary-grade gold was purchased in Naira at prices linked to LBMA benchmarks. This structure preserves Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves.

By buying domestically refined gold without deploying foreign currency, the transaction supports reserve accumulation and broader macroeconomic stability.

Governor Cardoso noted that central banks globally are increasingly prioritising economic resilience amid ongoing geopolitical and market uncertainties. Gold, he said, has regained importance as a hedge against inflation and market volatility, while other strategic minerals are playing a growing role in global supply chains and industrial development.

African Central Banks Turn to Gold

Across Africa, countries are boosting gold reserves to protect against currency depreciation, curb high inflation, and reduce dependence on the US dollar.

Central banks in Zimbabwe, Sudan, Kenya, Namibia, Rwanda, and the Democratic Republic of Congo have recently expanded their gold holdings, often linking accumulation to currency stabilization and foreign exchange inflow strategies.

Source: Africabusinessinsider