CBN Strengthens Gold Reserves to $3.5bn as Senate Moves to Make Apex Bank Lead Fintech Regulation
The Central Bank of Nigeria (CBN) has increased its gold reserves to $3.5 billion by acquiring domestically sourced, London Bullion Market Association (LBMA) certified bullion, highlighting the bank’s push to diversify reserves and strengthen Nigeria’s financial stability. Governor Olayemi Cardoso disclosed the development during a workshop on maximizing the economic benefits of minerals, stressing that the move preserves foreign exchange holdings while boosting national gold reserves. The gold, procured under the National Gold Purchase Programme (NGPP) and aggregated by the Solid Minerals Development Fund (SMDF), follows internationally recognized sourcing standards.
The CBN’s initiative reflects a broader strategy to reduce external vulnerabilities and enhance macroeconomic resilience. By purchasing gold in Naira at pricing linked to LBMA benchmarks, the central bank not only supports domestic miners but also aligns with global best practices for responsible mineral sourcing. Stakeholders, including the World Gold Council and Africa Finance Corporation, praised the NGPP for creating a formalized, transparent supply chain that strengthens Nigeria’s position in global gold markets. Experts highlighted that strategic gold reserves and proper mineral management are crucial for long-term economic stability.
In parallel, the Nigerian Senate has moved to position the CBN as the primary regulator of the country’s expanding fintech sector. During a public hearing on amendments to the Banks and Other Financial Institutions Act (BOFIA), lawmakers emphasized the need for stronger oversight of technology-driven financial services, including mobile money operators, payment platforms, and digital lenders. The Senate also demanded tougher measures to combat Ponzi schemes, citing recent incidents like the collapse of the Crypto Bullion Exchange (CBEX) that caused substantial losses for investors across the country.
Senators argued that consolidating fintech supervision under the CBN ensures coherent regulation and protects consumers, avoiding bureaucratic overlaps from creating a separate agency. The amendment bill proposes designating systemically important fintechs, establishing a national registry for transparency, and strengthening risk-based supervision tailored to digital financial services. Senate leaders stressed that modern financial regulation must balance innovation with safeguards for consumer protection, cybersecurity, and systemic stability.
The twin developments—the CBN’s gold reserve boost and the Senate’s fintech reforms—demonstrate Nigeria’s proactive approach to securing economic resilience and protecting citizens in a rapidly digitalizing economy. By combining prudent reserve management with strengthened regulatory oversight, the government aims to reduce financial vulnerabilities, support local industries, and foster trust in the country’s financial institutions. Experts believe these measures could position Nigeria as a model for emerging economies seeking to balance resource management with technological innovation.
source: ARISE