The Central Bank of Nigeria (CBN) has revealed that the value of Nigeria’s gold reserves surged to N2.77 trillion as of December 31, 2024, marking a substantial increase from N1.28 trillion recorded at the end of 2023. The data was disclosed in the CBN’s audited financial statement for the 2024 financial year.
While the volume of gold holdings remained unchanged at 687,402 troy ounces, the significant rise in value was attributed to soaring global gold prices. The CBN reported that it valued its gold bullion at $2,624.39 per ounce by year-end 2024, compared to $2,062.98 per ounce in 2023.
This increase aligns with a broader global trend of growing gold reserves, as central banks worldwide intensified their gold purchases in 2024 amid mounting concerns over inflation, currency volatility, and global economic uncertainties.
According to the World Gold Council’s Gold Demand Trends report for 2024, global gold demand—including over-the-counter investment—rose by 1% to reach 4,974 tonnes, setting a new annual record. Central banks were major contributors, purchasing over 1,000 tonnes for the third consecutive year.
The report also highlighted that the London Bullion Market Association (LBMA) gold price averaged $2,386 per ounce in 2024, a 23% rise compared to 2023. Notably, in Q4 of 2024, the average price climbed to $2,663 per ounce, significantly boosting the valuation of central banks’ gold holdings. The total value of global gold demand hit an all-time high of $382 billion, driven by strong prices and persistent buying across investment and institutional sectors.
In addition to the gold reserves, the CBN’s audited accounts showed that Nigeria’s total external reserves grew sharply to N54.73 trillion by the end of 2024, up from N29.98 trillion recorded at the close of 2023. Gold now accounts for approximately 5.1% of total external reserves, up from around 4.3% in the previous year.
The increase underscores a strategic move by the CBN to diversify Nigeria’s reserve assets, reducing exposure to currency risks, particularly fluctuations in the U.S. dollar. This gold accumulation aligns with a growing global trend of hedging reserves with tangible, inflation-resistant assets.
By December 31, 2024, Nigeria’s net foreign exchange reserves stood at $23.11 billion, the highest level recorded in over three years. This marks a remarkable recovery from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The country’s gross external reserves also rose to $40.19 billion by the end of 2024, compared to $33.22 billion at the close of 2023.
Several key factors contributed to this improvement:
- The CBN reduced exposure to short-term foreign exchange obligations, including swaps and forward contracts, alleviating pressure on the net reserve position.
- There was a noticeable rise in foreign exchange inflows from non-oil sectors, strengthening the country’s external reserves and reducing reliance on oil revenues.
This 9am News report highlights Nigeria’s growing financial resilience and strategic reserve management under the current economic climate.
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