CBN’s Gold Reserves Surge to N2.77 Trillion in 2024 Amid Global Price Rally
The Central Bank of Nigeria (CBN) has reported a significant increase in the value of its gold reserves, which rose to N2.77 trillion as of December 31, 2024. This marks a substantial jump from the N1.28 trillion recorded at the end of 2023, according to the apex bank’s audited financial statement for the year.
Gold Holdings Remain Steady While Value Soars
While the CBN maintained its gold holdings at 687,402 troy ounces throughout 2024, the reserve’s value appreciated dramatically due to rising global gold prices. The bank valued its gold bullion at $2,624.39 per ounce at year-end, up from $2,062.98 per ounce in 2023.
Global Gold Demand Fuels Price Increase
The World Gold Council’s 2024 Gold Demand Trends report revealed that global gold demand reached a record 4,974 tonnes, with central banks purchasing over 1,000 tonnes for the third consecutive year. The London Bullion Market Association (LBMA) reported an average gold price of $2,386 per ounce in 2024, representing a 23% year-on-year increase.
Nigeria’s External Reserves Show Strong Growth
The CBN’s financial statements also showed:
- Total external reserves grew to N54.73 trillion in 2024 from N29.98 trillion in 2023
- Gold reserves now account for 5.1% of total external reserves, up from 4.3%
- Net foreign exchange reserves reached $23.11 billion – the highest level in three years
- Gross external reserves increased to $40.19 billion from $33.22 billion
Strategic Diversification of Reserves
The CBN’s increased gold holdings reflect a strategic shift toward diversifying Nigeria’s reserve portfolio away from traditional currency assets. This move provides protection against dollar volatility and global financial risks while capitalizing on gold’s inflation-resistant properties.
Factors Behind Reserve Growth
Key drivers of Nigeria’s improved reserve position include:
- Reduced exposure to short-term foreign exchange obligations
- Increased foreign exchange inflows from non-oil sectors
- Strategic management of swaps and forward contracts
With global central banks expected to continue gold accumulation in 2025, Nigeria’s reserve strategy appears aligned with international trends favoring tangible, stable-value assets.
Full credit to the original publisher: Nairametrics