The Central Bank of Nigeria (CBN) has bolstered its foreign reserves with the addition of responsibly sourced gold refined to London Bullion Market Association (LBMA) Good Delivery standards, bringing total gold holdings to $3.5 billion.
This comes as the Senate Wednesday moved to reposition the CBN as the coordinating authority for the regulation of Nigeria’s fast-expanding fintech ecosystem, while simultaneously demanding tougher legislative and enforcement measures to stem the rising tide of Ponzi schemes across the country.
The foreign reserves move underscores the central bank’s ongoing strategy to diversify its reserve portfolio and enhance financial stability.
A statement Wednesday quoted the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, as having disclosed this at a one-day workshop on ‘Strategies to Maximise the Economic Benefits of Minerals in Nigeria.’
The gold, sourced domestically, was aggregated by the Solid Minerals Development Fund (SMDF) under the National Gold Purchase Programme(NGPP).
The initiative engages local miners and adheres to internationally recognisedresponsible sourcing standards, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidelines and the World Gold Council’s London Principles.
Cardoso, further disclosed that the CBN acquired the monetary-grade gold in Naira at pricing linked to LBMA benchmarks, a structure designed to preserve Nigeria’s foreign exchange holdings while strengthening the nation’s gold reserves.
By purchasing domestically refined gold without deploying foreign currency, he said, the transaction enhances reserve accretion and supports broader macroeconomic stability objectives.
Cardoso also highlighted major shifts in global reserve management strategies, noting their increasing importance amid rising global economic uncertainties.
He described the event as a reflection of Nigeria’s shared commitment to responsible and strategic management of its mineral resources. He emphasisedthat the workshop underscored the nation’s readiness to adapt to the realities of an evolving global economy, where resilience, diversification, and prudent governance have become increasingly vital.”
He further explained that the session, convened by the CBN’s Corporate Secretariat and Reserve Management Departments, was designed to create a structured platform for engagement with key players in the gold sector and to deepen understanding of the industry’s current landscape, opportunities, and challenges across its value chain.
He added: “Central banks around the world are prioritising economic resilience amid persistent geopolitical and market uncertainties.”
Gold, he said, has regained importance as a hedge against inflation and volatility, while other critical minerals are increasingly shaping global supply chains and advanced industrial development.
Cardoso emphasised that Nigeria’s immense natural and human resource potential could only be fully realised through prudence, strategic coordination, and long-term planning.
He highlighted the need for strict adherence to internationally recognisedstandards, stressing that institutional credibility depends on strong governance frameworks.
The Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, highlighted that the successful delivery of LBMA standard gold demonstrates the strength of the organisation’sformalisation framework and supply chain due diligence processes.
The World Gold Council’s Director of Central Banks and Public Policy, MsKurtulus Taskale Diamondopoulos, commended both the CBN and SMDF for designing the Nigerian Gold Purchase Programme (NGPP) in line with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She noted that the partnership between the CBN as sole off-taker and the SMDF as fiscal and supply chain manager offers a strong model for other countries seeking to strengthen similar programmes.
The President and CEO of the Africa Finance Corporation (AFC), Mr. Samaila Zubairu, reaffirmed AFC’s commitment to financing and formalisingNigeria’s mineral sector, stressing the importance of accurate data and mineral processing infrastructure to attract investment, improve gold recovery, reduce environmental impact and support central bank purchases.
Also speaking, the Executive Vice Chairman of Kian Smith Gold Company, Ms. Nere Emiko, underscored the urgent need for Nigeria to build strategic gold reserves and leverage commodity exchanges, noting the country’s low reserve levels relative to peers and calling for greater investment in exploration and transparency.
Emiko further reiterated that the Domestic Gold Purchase Programme forms part of the Central Bank’s broader strategy to enhance reserve quality, reduce external vulnerabilities, and position Nigeria’s mineral wealth as a pillar of long-term economic stability.
Senate Moves to Make CBN Lead Fintech Regulator, Orders Crackdown on Ponzi Schemes
Meanwhile, the Senate Wednesday moved to reposition the CBN as the coordinating authority for the regulation of Nigeria’s fast-expanding fintech ecosystem, while simultaneously demanding tougher legislative and enforcement measures to stem the rising tide of Ponzi schemes across the country.
The twin resolutions emerged at a one-day public hearing convened at the National Assembly to consider the Banks and Other Financial Institutions Act (Amendment) Bill 2025 (SB. 959) and to investigate the operations of fraudulent investment platforms, with particular reference to the recent Crypto Bullion Exchange (CBEX) incident.
The hearing, jointly organised by the Senate Committees on Banking, Insurance and Other Financial Institutions; ICT and Cyber Security; Capital Market; and Anti-Corruption and Financial Crimes, underscored lawmakers’ determination to fortify Nigeria’s financial regulatory architecture amid rapid digital transformation and escalating financial fraud.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, who led deliberations, said the amendment bill seeks to strengthen the existing provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 by expressly bringing technology-enabled financial service providers under clearer statutory supervision.
Abiru explained that while fintech companies, including mobile money operators, digital lenders, payment platforms and settlement firms, have significantly deepened financial inclusion and now serve millions of Nigerians, the legal and supervisory framework has not evolved at the same pace as their growth and systemic relevance.
According to him, the current framework for designating Systemically Important Financial Institutions remains largely bank-focused and does not adequately address the realities of large, data-driven, non-bank financial platforms.
This regulatory gap, he warned, poses risks to financial stability, consumer protection, data sovereignty and national security.
The proposed amendment, he said, would empower the CBN to designate qualifying fintechs and digital financial institutions as Systemically Important Institutions; establish a national registry to enhance transparency and beneficial ownership disclosure; strengthen risk-based supervision tailored to technology-driven services; and promote systemic stability within the broader financial ecosystem.
Abiru firmly rejected suggestions in some quarters for the creation of a standalone fintech regulatory agency. Establishing a new body, he argued, would duplicate existing functions, create bureaucratic overlap, increase administrative costs and fragment regulatory authority in a sector that demands coordination and coherence.
He said, “Fintech regulation is closely linked to monetary policy, payments oversight, prudential supervision, Know-Your-Customer and Anti-Money Laundering enforcement, and systemic risk monitoring, functions that already reside within the Central Bank.”
He added that strengthening BOFIA and modernising the CBN’s supervisory powers, while mandating structured collaboration with agencies such as the Securities and Exchange Commission, Nigerian Communications Commission, National Information Technology Development Agency, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, the Office of the National Security Adviser and the Federal Ministry of Finance, represents a more coherent policy pathway.
Senate President Godswill Akpabio, represented at the hearing by the Senate Leader Opeyemi Bamidele, said the engagement was convened pursuant to the Senate’s constitutional mandate to safeguard the stability, integrity and resilience of Nigeria’s financial system.
He described the financial system as the backbone of any modern economy, noting that when effectively regulated and supervised, it mobilises savings, allocates credit, facilitates payments, supports entrepreneurship and drives economic growth.
Akpabio stressed that the inclusion of technology-enabled financial service providers within an enhanced supervisory framework reflects the realities of modern finance, where innovation must operate within clearly defined legal boundaries that guarantee consumer protection, cybersecurity, operational resilience and transparency.
Beyond fintech regulation, the Senate devoted significant attention to the proliferation of Ponzi schemes and fraudulent digital investment platforms, describing them as a grave threat to public confidence and economic stability.
Lawmakers on the occasion cited the CBEX collapse as a painful reminder of the devastating human and economic toll of such schemes. Reports presented at the hearing indicated that young professionals, retirees, traders, small business owners and students suffered substantial losses after being lured by promises of unrealistic returns.
The Senate warned that beyond individual hardship, Ponzi schemes erode trust in legitimate financial institutions, distort capital allocation, damage Nigeria’s financial reputation and heighten exposure to money laundering and illicit financial flows.
Akpabio said the investigative hearing was aimed at identifying regulatory and enforcement gaps, assessing coordination among relevant agencies, and determining whether existing laws adequately address digital and cross-border financial fraud.
Stakeholders who made submissions at the hearing included representatives of the CBN, the Nigerian Deposit Insurance Corporation, the Economic and Financial Crimes Commission, the Nigerian Communications Commission, the Federal Competition and Consumer Protection Commission, the Ministry of Finance Incorporated, and the Chartered Institute of Bankers of Nigeria.
They all supported the bill even as they pointed certain aspects for amendments before the eventual passage.
The Senate assured that all memoranda and recommendations would be carefully reviewed, with a view to enacting evidence-based reforms that reinforce trust in Nigeria’s banks, regulators and financial markets.
By consolidating fintech supervision under the CBN and tightening the noose on Ponzi operators, the Senate signalled its resolve to strengthen Nigeria’s financial system and protect citizens from exploitation in an increasingly digital economy.
James Emejo, Sunday Aborisade, Nume Ekeghe
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