Senate Seeks to Raise Gold's Proportion in Foreign Reserve Assets To 30%

The Nigerian Senate is currently reviewing a new bill that aims to raise the percentage of gold in the country's foreign reserve assets from 4% to 30%. 

This initiative is intended to diversify the reserves away from reliance on the US dollar and towards a more sustainable commodity. 

A draft bill proposes policies that would designate the Central Bank as the automatic purchaser of all gold produced in Nigeria. 

Currently, the country's reserves stand at $34.8 billion, with gold accounting for only 4% as of the end of November. 

If the new bill is adopted, the informal gold mining industry will be integrated into the formal sector and come under the jurisdiction of the Central Bank. 

The Senate is also proposing the establishment of a Gold Reserve Authority to oversee the management of the country's gold reserves and a newly formed gold reserve management committee led by the CBN governor Yemi Cardoso. 

This committee's composition and functions are designed to closely resemble those of the central bank’s monetary policy committee to ensure expertise and consistency in managing the nation's gold reserves.