With the addition of ethically sourced gold that has been processed in accordance with London Bullion Market Association (LBMA) Good Delivery standards, the Central Bank of Nigeria (CBN) has increased its foreign reserves to $3.5 billion.
In addition to calling for stricter legislation and enforcement measures to stop the growing number of Ponzi scams in Nigeria, the Senate yesterday sought to reposition the CBN as the coordinating body for the regulation of the country’s rapidly growing fintech industry.
The shift in foreign reserves highlights the central bank’s continuous efforts to improve financial stability and diversify its reserve portfolio.
This was revealed at a one-day workshop on “Strategies to Maximise the Economic Benefits of Minerals in Nigeria,” according to a statement released yesterday by Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN).
The Solid Minerals Development Fund (SMDF) collected the gold from domestic sources as part of the National Gold Purchase Program (NGPP).
The World Gold Council’s London Principles and the Organization for Economic Co-operation and Development’s (OECD) Due Diligence Guidelines are two globally recognized responsible sourcing standards that the initiative upholds while including local miners.
Cardoso also revealed that the CBN purchased the monetary-grade gold in Naira at prices based on LBMA benchmarks, a mechanism intended to protect Nigeria’s foreign exchange assets while bolstering the country’s gold reserves.
He claimed that by buying domestically processed gold without using foreign currency, the transaction serves more general macroeconomic stability goals and improves reserve accretion.
Cardoso also emphasized significant changes in international reserve management practices, pointing out their growing significance in the face of escalating economic uncertainty worldwide.
He explained that Nigeria’s collective dedication to prudent and strategic management of its mineral resources is reflected in the event. He emphasized that the workshop highlighted the country’s preparedness to adjust to the realities of a changing global economy, where wise governance, resilience, and diversification have become more crucial.
He went on to say that the purpose of the meeting, which was organized by the Reserve Management and Corporate Secretariat departments of the CBN, was to deepen understanding of the opportunities, challenges, and current state of the gold industry throughout its value chain as well as to provide a structured platform for engagement with important players.
“Economic resilience is being prioritized by central banks worldwide amid ongoing geopolitical and market uncertainties,” he continued.
According to him, gold has become more significant as a hedge against volatility and inflation, while other essential minerals are increasingly influencing global supply chains and advanced industrial development.
Cardoso emphasized that long-term planning, strategic collaboration, and caution were necessary to fully realize Nigeria’s enormous potential in terms of natural and human resources.
Strong governance frameworks are essential for institutional legitimacy, he emphasized, emphasizing the necessity of rigorous adherence to globally recognized norms.
The effective delivery of LBMA grade gold, according to Hajiya Fatima Umaru Shinkafi, Executive Secretary of the Solid Minerals Development Fund (SMDF), shows the soundness of the organization’s formalization structure and supply chain due diligence procedures.
Ms. Kurtulus Taskale Diamondopoulos, the Director of Central Banks and Public Policy at the World Gold Council, praised the CBN and SMDF for creating the Nigerian Gold Purchase Programme (NGPP) in accordance with the twelve London Principles for ethical artisanal and small-scale gold sourcing.
She pointed out that for other nations looking to bolster comparable initiatives, the collaboration between the SMDF as fiscal and supply chain manager and the CBN as sole off-taker provides a solid model.
Mr. Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC), reiterated AFC’s dedication to funding and formalizing Nigeria’s mineral industry. He emphasized the significance of precise data and mineral processing infrastructure to draw investment, enhance gold recovery, lessen environmental impact, and facilitate central bank purchases.
Speaking as well, Ms. Nere Emiko, Executive Vice Chairman of Kian Smith Gold Company, emphasized the critical need for Nigeria to develop strategic gold reserves and utilize commodity exchanges, pointing out the nation’s low reserve levels in comparison to peers and advocating for increased investment in exploration and transparency.
Emiko also restated that the Central Bank’s larger plan to improve reserve quality, lessen external vulnerabilities, and establish Nigeria’s mineral riches as a cornerstone of long-term economic stability includes the Domestic Gold Purchase Program.
The Senate orders a crackdown on Ponzi schemes and moves to designate CBN as the primary fintech regulator.
In the meantime, the Senate moved yesterday to reestablish the CBN as the coordinating body for the regulation of Nigeria’s rapidly growing fintech industry while also calling for stricter laws and enforcement actions to stop the country’s Ponzi scheme epidemic.
At a one-day public hearing held at the National Assembly to examine the Banks and Other Financial Institutions Act (Amendment) Bill 2025 (SB. 959) and to look into the activities of fraudulent investment platforms, specifically in relation to the recent Crypto Bullion Exchange (CBEX) incident, the twin resolutions were presented.
The Senate Committees on Banking, Insurance and Other Financial Institutions; ICT and Cyber Security; Capital Market; and Anti-Corruption and Financial Crimes jointly organized the hearing, which demonstrated lawmakers’ resolve to strengthen Nigeria’s financial regulatory framework in the face of the country’s fast digital transformation and rising financial fraud.
The amendment bill aims to strengthen the current provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 by specifically bringing technology-enabled financial service providers under clearer statutory supervision, according to Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, who led discussions.
Although fintech companies, such as mobile money operators, digital lenders, payment platforms, and settlement firms, have greatly expanded financial inclusion and are currently serving millions of Nigerians, Abiru clarified that the legal and regulatory framework has not changed at the same rate as their expansion and systemic significance.
He claims that the existing system for identifying Systemically Important Financial Institutions is still mostly bank-focused and does not sufficiently take into account the realities of sizable, data-driven, non-bank financial platforms.
He cautioned that financial stability, consumer protection, data sovereignty, and national security are at risk due to this regulatory void.
According to him, the proposed amendment would give the CBN the authority to designate qualifying fintechs and digital financial institutions as Systemically Important Institutions; create a national registry to improve beneficial ownership disclosure and transparency; bolster risk-based supervision specifically designed for technology-driven services; and encourage systemic stability within the larger financial ecosystem.
Abiru vehemently disagreed with proposals from certain quarters to establish a separate fintech regulatory body. In an industry that requires coordination and coherence, he contended that the creation of a new agency would result in the duplication of current functions, bureaucratic overlap, higher administrative expenses, and fragmentation of regulatory authority.
“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—are closely linked to Fintech regulation,” he stated.
Strengthening BOFIA and updating the CBN’s oversight authority, he continued, while requiring organized cooperation with organizations like the Federal Competition and Consumer Protection Commission, the Nigerian Communications Commission, the Securities and Exchange Commission, the National Information Technology Development Agency, the Corporate Affairs Commission, the Office of the National Security Adviser, and the Federal Ministry of Finance, is a more logical course of action.
Senate President Godswill Akpabio, who was represented at the hearing by Senate Leader Opeyemi Bamidele, stated that the engagement was held in accordance with the Senate’s constitutional mission to protect Nigeria’s financial system’s stability, integrity, and resilience.
He referred to the financial system as the foundation of every contemporary economy, pointing out that when it is properly regulated and overseen, it mobilizes savings, distributes credit, makes payments easier, encourages entrepreneurship, and propels economic expansion.
The inclusion of technology-enabled financial service providers in an improved supervisory framework, according to Akpabio, reflects the realities of contemporary finance, where innovation must function within precisely defined legal boundaries that ensure consumer protection, cybersecurity, operational resilience, and transparency.
The Senate focused a lot of attention on Ponzi schemes and fraudulent digital investment platforms in addition to fintech regulation, characterizing them as a serious threat to public trust and economic stability.
The CBEX failure was mentioned by lawmakers as a sobering reminder of the catastrophic human and financial cost of such schemes. According to reports given during the trial, students, traders, seniors, young professionals, and small business owners all incurred significant losses as a result of being seduced by claims of inflated profits.
Beyond personal misery, the Senate cautioned that Ponzi schemes undermine confidence in reputable financial institutions, skew capital allocation, harm Nigeria’s financial standing, and increase vulnerability to money laundering and illegal financial flows.
According to Akpabio, the investigation hearing’s objectives were to find regulatory and enforcement gaps, evaluate agency collaboration, and ascertain if current legislation sufficiently addresses digital and international financial fraud.
The CBN, the Nigerian Deposit Insurance Corporation, the Federal Competition and Consumer Protection Commission, the Nigerian Communications Commission, the Economic and Financial Crimes Commission, the Ministry of Finance Incorporated, and the Chartered Institute of Bankers of Nigeria were among the stakeholders who presented arguments at the hearing.
Even though they pointed out some points of the bill that needed to be changed before it was finally passed, they all supported it.
In order to implement evidence-based changes that strengthen confidence in Nigeria’s banks, regulators, and financial markets, the Senate promised to thoroughly analyze all memoranda and recommendations.
The Senate demonstrated its determination to fortify Nigeria’s financial system and shield individuals from exploitation in an increasingly digital economy by unifying fintech oversight under the CBN and tightening the noose on Ponzi operators.
