Nigerian lawmakers are proposing a dramatic increase in the central bank’s (CBN) power to use gold to shore up the nation’s reserves in defense of the economy.
A draft bill before the Senate puts forward a raft of policies that would enshrine the bank as the automatic off-taker for all the gold produced in the country, alongside a goal to make the precious metal at least 30% of Nigeria’s external reserves.
The Central Bank of Nigeria (CBN) held 21.38 tons of Gold reserves valued at $1.25 billion at the end of 2022, according to its recently released annual financial statement.
Lawmakers propose setting up a Gold Reserve Authority. They also want the central bank governor to chair a gold reserve management committee, whose composition and functions closely mirrors the monetary policy committee of the bank, Bloomberg reported.
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