At the Comercio Partners H2 2025 Economic Outlook conference, financial experts urged the Central Bank of Nigeria (CBN) to expand its gold reserves and incorporate cryptocurrencies into its asset diversification strategy. This call to action comes as global economic uncertainties, including inflation and geopolitical tensions, prompt central banks worldwide to rethink traditional reserve management approaches.
Gold Reserves Surge in Value
The CBN’s gold reserves, which remained steady at 687,402 troy ounces in 2024, saw their value soar to N2.77 trillion, nearly doubling from N1.28 trillion in 2023. This significant increase was driven by a rise in global gold prices, which climbed from $2,062.98 to $2,624.39 per ounce. The surge reflects gold’s enduring appeal as a safe-haven asset amid economic volatility, aligning with a global trend where central banks are increasing gold holdings to hedge against instability. According to the World Gold Council, central banks globally purchased over 1,000 tonnes of gold in 2024, marking a significant uptick from the previous decade’s average.
Gold as a Driver of Economic Growth
Professor Joseph Nnanna, Chief Economist at the Development Bank of Nigeria, emphasized the broader economic benefits of expanding gold reserves. He argued that increasing domestic gold purchases could stimulate industrial growth and job creation by activating the entire value chain, from mining to refining to manufacturing. “Investing in gold isn’t just about financial security; it’s about fostering industries like jewelry and electronics, which can create jobs and drive economic development,” Nnanna stated. He highlighted the multiplier effect of such investments, which could strengthen Nigeria’s domestic supply chains and reduce reliance on imports.
Nnanna also advocated for diversifying the CBN’s reserve portfolio beyond its current mix of gold and U.S. dollars. He pointed to the potential of crypto assets, such as stablecoins, to enhance financial resilience. “The U.S. dollar has weakened recently, and relying solely on fiat currencies is no longer prudent. Gold’s value is rising, and digital assets offer a new layer of protection against economic shocks,” he explained. This perspective aligns with Nigeria’s growing crypto adoption, with transaction volumes reaching $56.7 billion between July 2022 and June 2023, according to Chainalysis.
Geopolitical Risks and De-Dollarisation
Zeal Akaraiwe, CEO of Graeme Blaque Advisory, underscored the geopolitical risks of over-reliance on U.S. dollar holdings. He noted that political decisions in the U.S. could disrupt Nigeria’s ability to trade or settle international transactions. “When global financial systems are influenced by politics rather than economics, countries must seek alternatives,” Akaraiwe warned. He cited China’s dual currency model—using the domestic yuan (CNY) and offshore yuan (CNH)—as an example of a strategy that balances global engagement with financial sovereignty. Akaraiwe urged Nigeria to adopt similar measures, including diversifying into gold and cryptocurrencies, to safeguard its economy.
A Strategic Shift in Reserve Management
The experts’ recommendations come at a time when Nigeria’s external reserves have grown significantly, reaching N54.73 trillion by the end of 2024, up from N29.98 trillion in 2023. Gold now accounts for 5.1% of these reserves, up from 4.3% the previous year, reflecting the CBN’s strategic shift toward inflation-resistant assets. The CBN’s recent financial performance, including a reported profit of N38.8 billion in 2024, further bolsters confidence in its ability to implement forward-thinking policies.
The push for diversification also aligns with Nigeria’s evolving cryptocurrency landscape. In December 2023, the CBN lifted its ban on crypto transactions, signaling a shift toward regulation rather than prohibition. The Investments and Securities Act (ISA) 2024, passed in March 2025, recognized digital assets as securities and brought Virtual Asset Service Providers (VASPs) under the regulatory oversight of the Nigerian Securities and Exchange Commission (SEC). These developments reflect Nigeria’s recognition of cryptocurrencies’ potential to drive financial inclusion and innovation, particularly among its tech-savvy youth.
Looking Ahead
As global economic uncertainties persist, the CBN faces increasing pressure to modernize its reserve management strategy. Experts at the Comercio Partners conference emphasized that diversification into gold and crypto assets is not just a financial choice but a strategic necessity. By expanding its gold reserves and exploring digital assets, Nigeria can enhance its economic resilience, attract foreign investment, and position itself as a leader in the global financial landscape. The CBN’s next steps will be critical in navigating the challenges and opportunities of a rapidly evolving economic order.
