Gold prices surged 42.8% between September 2024 and September 2025, breaking records by surpassing $3,650 per ounce and briefly hitting over $3,800 in October 2025. This rally is fueled by a weaker U.S. dollar, ongoing inflation, and rising geopolitical tensions.
Impact on Nigeria’s Gold Reserves
- Nigeria holds 687,402 troy ounces (approx. 21.38 metric tonnes) of gold as of end-2024.
- At current prices, Nigeria’s gold reserves are now valued at over N3.7 trillion, up from N2.77 trillion in 2024 and N1.28 trillion in 2023.
- This reflects a N2.4 trillion gain over two years, underscoring gold’s role as a strong store of value amid global uncertainty.
Global Trends in Central Bank Gold Buying
- Central banks worldwide are increasing gold holdings, with seven central banks adding gold as of August 2025.
- Notable buyers:
- Bank of Ghana: Added 2 tonnes in August, totaling 36 tonnes.
- People’s Bank of China: 2 tonnes added, total reserves exceed 2,300 tonnes.
- National Bank of Kazakhstan: 8 tonnes added, reserves now at 316 tonnes.
- Sellers include Russia and Indonesia, selling 3 and 2 tonnes respectively.
- The U.S. Treasury’s gold holdings surpassed $1 trillion in value, far exceeding official balance sheet figures.
Factors Driving the Gold Rally
- Flight to safety due to trade wars and geopolitical instability.
- Concerns over U.S. government funding crises.
- Strong investments in gold-backed ETFs.
- Interest rate cuts by the U.S. Federal Reserve.
New Opportunities for Domestic Investors
- National Pension Commission (PenCom) has updated regulations allowing pension funds to invest in gold through tradable Gold Receipts on SEC-recognized exchanges.
- This facilitates exposure to gold without the hassle of physical storage, providing a secure, liquid asset class.
- These instruments promote portfolio diversification, improved returns, and reduced concentration risk.
