CBN Boosts Gold Reserves to $3.5 Billion Amid Strategy Shift

The Central Bank of Nigeria (CBN) has announced an increase in its gold reserves to $3.5 billion, achieved through sourcing gold from local refiners that meet the London Bullion Market Association's good delivery standards. This move is part of the CBN's strategy to diversify its foreign reserves and support the development of the local mining sector.

Governor Mr. Olayemi Cardoso emphasized that the gold purchasing program is linked to the naira price and structured to build reserves without relying on U.S. foreign currency. The initiative reflects a global trend where central banks are increasingly turning to gold as a hedge against inflation and geopolitical risks.

The CBN aims to maximize the economic benefits for local miners and has engaged stakeholders across the gold value chain to explore opportunities and challenges. The program aligns with the World Gold Council's guidelines and aims to formalize Nigeria's gold supply chain, enhancing compliance with international standards.