CBN Gold Reserves Rise to $3.5bn as Diversification Strategy Deepens

The Central Bank of Nigeria has increased the value of its gold reserves to about $3.5 billion after adding responsibly sourced gold refined to London Bullion Market Association Good Delivery standards to its foreign reserves.

The development represents another step in the country’s broader effort to diversify its reserve assets and strengthen financial stability.

According to the apex bank, the gold was sourced locally through the National Gold Purchase Programme, an initiative coordinated by the Solid Minerals Development Fund. The programme operates under a responsible sourcing framework aligned with international standards, including the Organisation for Economic Co-operation and Development Due Diligence Guidelines and the World Gold Council’s London Principles.

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The central bank explained that the gold purchases were executed in naira and benchmarked against international pricing standards set by the LBMA. This structure allowed the country to strengthen its reserve position without drawing down foreign currency holdings.

The governor of the apex bank noted that acquiring locally refined gold using the domestic currency helps preserve external reserves while boosting reserve accumulation. He added that the role of gold in global reserve management has become more prominent in recent years, particularly amid economic uncertainty and volatility in financial markets.

Earlier financial disclosures showed that the value of Nigeria’s gold holdings rose sharply in recent years due largely to global price increases. By the end of 2024, the value of the reserves had climbed to about N2.77 trillion from N1.28 trillion recorded a year earlier. While the volume of gold holdings remained steady at 687,402 troy ounces, rising international prices significantly boosted the valuation.

The global rally in gold prices has seen the precious metal surge beyond $5,000 per ounce, reinforcing its appeal as a store of value and hedge against economic instability.

Officials also emphasised that discussions with stakeholders in the mineral sector are aimed at maximising the economic value of Nigeria’s natural resources and improving the structure of the gold supply chain.

Industry participants welcomed the initiative, describing it as an important step toward formalising the country’s artisanal and small-scale mining sector and strengthening transparency across the value chain. They also highlighted the need for greater investment in exploration and improved governance in order to expand Nigeria’s strategic gold reserves over the long term.