The Solid Minerals Development Fund (SMDF) has supplied additional responsibly sourced gold, refined to London Bullion Market Association (LBMA) good delivery standards, to the Central Bank of Nigeria (CBN), increasing Nigeria’s total gold reserves to about $3.5 billion.
The Executive Secretary of SMDF, Fatima Shinkafi, who made this known at a one-day workshop titled “Strategies to Maximise the Economic Benefits of Minerals in Nigeria,” said that the achievement reflects the success of the fund’s formalisation framework and supply chain due diligence under the National Gold Purchase Programme (NGPP).
Shinkafi explained that the initiative highlights Nigeria’s capacity to responsibly utilise its mineral resources to drive economic growth. She added that Nigeria introduced its gold purchase programme ahead of the Ghana Gold Bullion Programme and similar schemes in other countries, reinforcing its leadership in responsible gold reserve management within the region.
The locally sourced gold was aggregated by SMDF through the NGPP, which collaborates with artisanal and small-scale miners under a responsible sourcing framework consistent with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council London Principles.
He explained that acquiring domestically refined gold without deploying foreign currency enhances reserve growth and supports broader macroeconomic stability, especially amid global economic uncertainties.
Cardoso noted 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.
Also speaking, the Director of Central Banks and Public Policy at the World Gold Council, 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.
The workshop, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, brought together stakeholders across the gold value chain to explore opportunities and challenges in the sector.
READ ALSO: CBN Governor Announces Surge in Nigeria’s Foreign Reserves
Launched in 2020, the National Gold Purchase Programme remains active, with the CBN continuing to acquire locally sourced and responsibly refined gold to build reserves, reduce reliance on foreign exchange, and strengthen Nigeria’s external reserve position.