The Central Bank of Nigeria (CBN) has revealed that its gold reserves were valued at N2.77 trillion as of 31 December 2024, a significant rise from N1.28 trillion recorded at the end of 2023.
This update was provided in the CBN’s audited financial statement for the 2024 fiscal year.
Despite no change in the volume of gold held, which remained at 687,402 troy ounces, the rise in value resulted from a steep increase in global gold prices.
By the end of 2024, the CBN valued its gold bullion at $2,624.39 per ounce, compared to $2,062.98 per ounce a year earlier.
This jump in gold value reflects a wider global pattern, as central banks worldwide increased their gold purchases in 2024 due to inflation concerns, currency fluctuations, and economic uncertainty.
Global gold demand boosts valuation
Data from the World Gold Council’s Gold Demand Trends report for 2024 showed that global gold demand, including over-the-counter investments, climbed by one per cent to 4,974 tonnes — setting a new annual record.
Central banks played a major role in this growth, buying over 1,000 tonnes of gold for the third year in a row.
The report further stated: “The London Bullion Market Association (LBMA) gold price averaged $2,386 per ounce in 2024,” reflecting a 23% rise from 2023. It also noted that in the final quarter of the year, the average price climbed to $2,663 per ounce. This contributed to the increased market value of central bank gold holdings.
Overall, the total value of global gold demand hit a record $382 billion in 2024, driven by the combination of rising prices and consistent demand from multiple sectors.
CBN strengthens reserve base
According to its audited results, the CBN also reported that Nigeria’s total external reserves surged to N54.73 trillion by the end of 2024, up from N29.98 trillion in 2023.
Gold made up around 5.1% of these reserves, compared to 4.3% the previous year.
The CBN’s rising investment in gold marks a shift towards diversifying away from traditional currency-based assets, aiming to reduce exposure to dollar-related risks and global market volatility.
Looking ahead, forecasts suggest central banks may continue to expand their gold holdings in 2025. In this context, Nigeria’s strategy aligns with an international movement to secure reserve assets that offer protection against inflation and economic instability.
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