The Central Bank of Nigeria (CBN) has reported that the worth of its gold reserves rose to N2.77 trillion as at 31 December 2024, up from N1.28 trillion recorded on the finish of 2023.
This was disclosed within the apex {bank}’s audited {financial} assertion for the 2024 {financial} 12 months.
Though the quantity of gold holdings remained unchanged at 687,402 troy ounces, the rise in worth was pushed by a pointy rise in world gold costs.
The CBN valued its gold bullion at a market worth of $2,624.39 per ounce as on the finish of 2024, in comparison with $2,062.98 per ounce within the earlier 12 months.
The rise in gold reserves mirrors a broader development globally, as central banks ramped up gold purchases in 2024 amid considerations over inflation, foreign money volatility, and {economic} uncertainty.
In keeping with the World Gold Council’s Gold Demand Developments report for 2024, world gold demand, together with over-the-counter funding, rose by one per cent to 4,974 tonnes, setting a brand new annual report. Central banks contributed considerably to this demand, buying over 1,000 tonnes for the third consecutive 12 months.
The report famous that the London Bullion Market Affiliation (LBMA) gold worth averaged $2,386 per ounce in 2024, marking a 23% enhance from 2023. Within the fourth quarter alone, the typical worth rose to $2,663 per ounce, contributing to a surge out there worth of central banks’ gold holdings.
The overall worth of world gold demand reached an all-time excessive of $382 billion in 2024, reflecting the mixed influence of upper costs and sustained shopping for throughout completely different sectors.
The CBN’s audited accounts additionally confirmed that Nigeria’s whole exterior reserves grew to N54.73 trillion on the finish of 2024, up from N29.98 trillion recorded in 2023.
Gold reserves accounted for roughly 5.1% of the overall exterior reserves, in comparison with about 4.3 per cent within the earlier 12 months.
The CBN’s elevated reliance on gold indicators a deliberate diversification away from conventional foreign money reserves, offering a hedge towards greenback volatility and world {financial} dangers.
With projections indicating that central banks might proceed to build up gold in 2025, Nigeria’s place seems aligned with a broader world development in the direction of securing reserve belongings in tangible, inflation-resistant kinds.
As of December 31, 2024, Nigeria’s internet overseas trade reserves stood at $23.11 billion, marking the best stage recorded in over three years.
This represents a pointy restoration in comparison with $3.99 billion on the finish of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
