CBN Boosts Gold Holdings to $3.5 Billion Amid Economic Uncertainty

The Central Bank of Nigeria (CBN) has announced an increase in its gold holdings to $3.5 billion, marking a significant step in its reserve diversification strategy. This decision was communicated in a statement on Wednesday, highlighting the importance of gold as a safe haven asset amid global economic uncertainties.

The gold acquisition is linked to the London Bullion Market Association (LBMA) benchmark, ensuring that Nigeria's foreign currency reserves are preserved and strengthened. As of December 31, 2024, the value of Nigeria's gold reserves is projected to rise to N2.77 trillion, up from N1.28 trillion in 2023.

This surge reflects a broader global trend where central banks are increasing their gold purchases due to concerns over inflation and currency volatility. Mr. Olayemi Cardoso, the CBN Governor, emphasized the need for prudent management strategies to fully realize Nigeria's vast natural and human resource potential.

The CBN also held a workshop to engage key players in the gold sector and explore opportunities across the value chain.