CBN Boosts Nigeria’s Reserves with $3.5bn Gold Reserve to Protect Naira
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has made a major move to protect the nation’s economy by adding more gold to its foreign reserves.
In a statement released on Wednesday, the apex bank announced that it has taken delivery of high-quality gold bars, bringing Nigeria’s total gold holdings to a value of $3.5 billion.
This gold was not bought from abroad with dollars. Instead, it was produced in Nigeria by local miners. The Solid Minerals Development Fund (SMDF) gathered the gold through a special government plan called the National Gold Purchase Programme. This ensures that the gold meets international “Good Delivery” standards, meaning it is pure and recognized globally.
The Governor of the Central Bank, Mr. Olayemi Cardoso, spoke about this achievement during a workshop on how Nigeria can get the most benefit from its minerals.
He explained that the CBN bought this gold using Naira, based on international market prices. By doing this, the government is able to build up the country’s savings without spending the scarce US dollars that Nigeria needs for other things.
Mr. Cardoso noted that many countries around the world are now buying more gold because of the way the global economy is shaking. He said, “Gold has regained importance as a hedge against inflation and volatility.” He added that having this gold makes Nigeria’s economy stronger and more resilient when there are troubles in the global market.
The Governor also pointed out that Nigeria is blessed with many natural resources, but the country can only benefit if things are done the right way. He said, “Nigeria’s immense natural and human resource potential can only be fully realised through prudence, strategic coordination, and long-term planning.” He stated that the bank is committed to following international rules to make sure everything is transparent.
Hajiya Fatima Umaru Shinkafi, who heads the Solid Minerals Development Fund, said that being able to deliver this high-quality gold shows that their system for organizing local miners is working well. International experts also praised the move. Ms. Kurtulus Taskale Diamondopoulos from the World Gold Council said Nigeria’s method is a great example for other countries to follow because it supports local small-scale miners while following global best practices.
Other leaders at the event, including Mr. Samaila Zubairu of the Africa Finance Corporation and Ms. Nere Emiko of Kian Smith Gold Company, agreed that Nigeria needs to keep building these gold reserves. They noted that compared to other countries, Nigeria still needs to do more to turn its underground wealth into actual savings that can support the Naira.
By buying gold produced at home, the CBN is not just saving for a rainy day; it is also supporting the local mining industry and making the Nigerian economy more stable for the long term.
