The Central Bank of Nigeria (CBN) has reported that the value of its gold reserves rose significantly to N2.77 trillion as of December 31, 2024, up from N1.28 trillion at the end of 2023, more than doubling within a year.
This development, which forms part of the apex bank’s newly released audited financial statements for the 2024 fiscal year, underscores not only a rebound in the valuation of Nigeria’s reserve assets but also marks a notable shift in the CBN’s asset management strategy amid volatile global economic conditions.
Crucially, the report comes at a time when the Central Bank is declaring its first annual profit in years, signaling a rare moment of financial stability after prolonged periods of operational deficits and controversial fiscal maneuvers. According to the financial statement, the CBN recorded a profit of N103.8 billion for the 2024 financial year, a marked turnaround from a loss of N498.2 billion reported in 2023. The bank also reported a comprehensive income of N1.67 trillion for the year under review, reversing a negative figure of N832 billion in the previous year.
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Although the volume of the CBN’s gold holdings remained unchanged at 687,402 troy ounces, the dramatic increase in valuation was fueled by a sharp rise in global gold prices. The bank priced its gold bullion at $2,624.39 per ounce as of December 2024, up from $2,062.98 per ounce at the end of 2023. This surge in price mirrored trends seen across global markets, where gold was in high demand among central banks and institutional investors.
The rising value of gold reserves coincides with a broader global trend that saw central banks increase their gold purchases in 2024 in response to inflation fears, currency volatility, and geopolitical uncertainty. According to the World Gold Council’s Gold Demand Trends report for 2024, total global demand for gold, including over-the-counter investments, rose by one percent to 4,974 tons, setting a new all-time high. For the third consecutive year, central banks accounted for over 1,000 tons of this demand, reinforcing gold’s status as a safe-haven asset.
The London Bullion Market Association (LBMA) reported that the average gold price in 2024 stood at $2,386 per ounce, representing a 23% increase over the previous year. In the fourth quarter alone, gold prices averaged $2,663 per ounce, sharply boosting the market value of gold holdings in central bank vaults worldwide. The total market value of global gold demand reached $382 billion in 2024, driven by high prices and sustained buying interest across sectors ranging from monetary authorities to private investors.
Against this backdrop, the CBN’s gold holdings now account for approximately 5.1% of Nigeria’s total external reserves, up from 4.3% in 2023. The bank’s decision to increase reliance on gold, even without boosting physical holdings, is a strategic move to hedge against the weakening of fiat currencies, particularly the US dollar, and to enhance the stability of Nigeria’s reserve portfolio. This form of diversification is increasingly being adopted by monetary authorities globally in response to shifts in global monetary policy, ongoing conflicts, and slowing global growth.
In addition to the increase in gold value, Nigeria’s total external reserves rose sharply to N54.73 trillion by the end of 2024, up from N29.98 trillion recorded in 2023. This expansion is not just a numerical gain; it reflects the impact of both asset revaluation due to currency movements and a series of deliberate actions by the apex bank to improve its foreign asset position.
As of December 31, 2024, Nigeria’s net foreign exchange reserves had climbed to $23.11 billion — the highest level in over three years. This represents a major recovery from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021. The growth in net reserves followed a strategic decision by the CBN to reduce its exposure to short-term foreign exchange obligations, particularly currency swaps and forward contracts, which had previously exerted significant pressure on the net reserve position.
Alongside improved asset management, the bank also benefitted from increased foreign exchange inflows from non-oil sources, helping to ease Nigeria’s historical reliance on crude oil exports. Non-oil export receipts and diaspora remittances played a growing role in shoring up the reserve base, as the CBN implemented policies aimed at enhancing inflows and curbing speculative demand for foreign exchange in the domestic market.
Gross external reserves also recorded an uptick, rising to $40.19 billion at the end of 2024, compared to $33.22 billion in the previous year. This increase, while supported by revaluation gains, also reflected efforts by the CBN to improve liquidity conditions and build confidence in the foreign exchange market.
The audited financial report offers a rare glimpse into a central bank that has faced intense scrutiny in recent years, especially under the leadership of its previous governor. During that period, the CBN was often accused of monetary policy distortions, opacity in foreign exchange management, and overreliance on interventionist programs that stretched its balance sheet.
Now under a new leadership, the 2024 financials appear to signal a turn toward fiscal discipline and more conventional central banking practices. The bank’s ability to report a profit, grow its reserves, and participate meaningfully in global asset revaluation trends is likely to boost investor confidence and restore credibility to Nigeria’s monetary policy framework.
Global forecasts suggest that central banks will continue to increase their gold holdings in 2025 amid lingering uncertainty. The CBN’s current positioning appears consistent with global best practices. By holding on to its gold stockpile and benefiting from its appreciation in value, the apex bank has not only improved its financial standing but also strengthened Nigeria’s buffer against external shocks.