Nigeria has raised its gold reserves to $3.5 billion after the central bank acquired a fresh batch of domestically sourced bullion, as part of efforts to diversify foreign assets while preserving scarce foreign exchange.
The Central Bank of Nigeria (CBN) said in a post on X on Thursday that it had received refined gold meeting the London Bullion Market Association (LBMA) Good Delivery standard.
“This milestone brings the Bank’s total gold holdings to $3.5 billion, marking a significant step in Nigeria’s reserve diversification strategy, the bank stated.
Domestic sourcing anchors reserve strategy
The bullion was sourced locally and aggregated by the Solid Minerals Development Fund under the National Gold Purchase Programme (NGPP), an initiative designed to formalise artisanal mining and integrate local producers into internationally recognised responsible sourcing frameworks.
Under the arrangement, the CBN purchased the monetary-grade gold in naira rather than foreign currency, with prices benchmarked against LBMA standards.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s mineral resources, CBN Governor Olayemi Cardoso said the structure allows the country to strengthen its external buffers without drawing down foreign reserves.
The initiative also aims to channel more value from Nigeria’s mineral resources into the formal financial system while improving transparency in the gold supply chain.
Central banks accelerate gold accumulation
The latest purchase comes at a time when global central banks are rapidly increasing their gold holdings amid rising geopolitical tensions and persistent economic uncertainty.
Gold prices have surged sharply over the past year as investors sought refuge from volatile financial markets. For the first time ever, spot gold rose above $5,000 an ounce in January, extending a powerful rally that saw the precious metal gain more than 60% in 2025.
According to the World Gold Council, central banks collectively bought 863 tonnes of gold last year, one of the highest levels on record and a reflection of the growing strategic role bullion plays in national reserve portfolios.
Gold and other precious metals are widely viewed as safe-haven assets that investors flock to during periods of market turmoil.
Last week, tensions in the Middle East escalated into conflict after direct US strikes on Iranian-linked targets prompted retaliatory threats, raising fears of renewed disruptions to global supply chains.
Reserves strengthen amid macro stabilisation drive
Against this backdrop, Nigeria has been strengthening its external buffers as part of broader efforts to stabilise its currency and improve macroeconomic resilience.
Cardoso recently disclosed that the country’s net external reserves surged by 772% over the past two years to $34.80 billion at the end of 2025, up from $3.99 billion in 2023.
He said the sharp rise reflects improvements in transparency and credibility in Nigeria’s foreign exchange management framework, which has helped attract stronger capital inflows and boost investor confidence.
Net reserves increased from $23.11 billion at the end of 2024 to $34.80 billion by the close of 2025, while gross external reserves rose to $45.71 billion from $40.19 billionover the same period.
Cardoso noted that the stronger reserve position enhances Nigeria’s ability to meet external obligations, support exchange-rate stability and strengthen overall macroeconomic resilience.
He also indicated at a post–Monetary Policy Committee briefing last week that gross external reserves had climbed further to $50.45bn as of February 16, 2026.
Support for the naira
The stronger reserve buffers helped underpin the naira in the early months of the year, with the currency appreciating to around ₦1,347.78 per dollar in February before easing again in recent weeks.
Analysts say the renewed pressure on the naira reflects persistent foreign exchange liquidity constraints and the impact of a strengthening U.S. dollar on emerging market currencies.
