The Central Bank of Nigeria (CBN) has announced a substantial rise in the value of its gold reserves, which soared to N2.77 trillion by the end of 2024—more than doubling from N1.28 trillion at the close of the previous year. This sharp increase, disclosed in the apex bank’s audited financial statement for 2024, occurred despite the volume of gold holdings remaining constant at 687,402 troy ounces.
The surge in value was fuelled by a significant jump in global gold prices. As at 31 December 2024, the CBN priced its gold bullion at $2,624.39 per ounce, compared to $2,062.98 per ounce the year before. This reflects a broader global trend, with central banks across various regions boosting gold purchases amid persistent concerns around inflation, currency instability, and overall economic volatility.
Global data supports this trend. According to the World Gold Council’s Gold Demand Trends report for 2024, global demand for gold—including over-the-counter investments—rose by one per cent to 4,974 tonnes, setting a new annual record. The report highlighted that central banks were key drivers of this momentum, acquiring over 1,000 tonnes for the third year in a row. The London Bullion Market Association (LBMA) recorded an average gold price of $2,386 per ounce in 2024, a 23 per cent increase from the previous year. During the final quarter alone, prices climbed to an average of $2,663 per ounce, further bolstering the market valuation of gold holdings.
The total value of global gold demand hit an unprecedented $382 billion in 2024, supported by both higher prices and consistent interest from various sectors.
In its broader financial position, the CBN reported that Nigeria’s total external reserves expanded significantly to N54.73 trillion by the end of 2024, compared to N29.98 trillion in 2023. Gold now represents around 5.1 per cent of Nigeria’s external reserves, up from approximately 4.3 per cent the previous year. This shift signals the CBN’s strategic move to diversify its reserve portfolio away from traditional currencies and towards more tangible, inflation-resistant assets such as gold.
This approach aligns with global projections suggesting that central banks will likely continue increasing their gold holdings in 2025, as economic uncertainties persist.
Nigeria’s reserve performance in 2024 marks a notable improvement across several metrics. As of the end of December, the country’s net foreign exchange reserves stood at $23.11 billion—the highest level in over three years. This is a remarkable turnaround from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The surge in net reserves has been attributed to strategic policy shifts by the CBN, particularly its move to reduce exposure to short-term foreign exchange liabilities such as swaps and forward contracts. These had previously exerted pressure on the net reserve position. Additionally, increased foreign exchange inflows from non-oil sectors played a significant role in reinforcing the reserve base and lowering Nigeria’s dependence on oil revenues.