Nigeria and Kenya have become the latest African countries to adopt a gold-purchasing strategy pioneered by Dr. Mahamudu Bawumia, as central banks across the continent move to shore up reserves, curb currency depreciation, and reduce dependency on the US dollar.
Three years ago, under a policy championed by former Vice President Dr. Mahamudu Bawumia, Ghana’s government authorised the Bank of Ghana to begin buying gold to build up the country’s reserves. The initiative aimed to cut over-reliance on foreign exchange inflows, reduce exposure to external shocks, and stabilise the cedi.
Since its launch, Ghana’s gold holdings have risen dramatically from a modest 7 tonnes to over 30 tonnes, making the West African nation a trailblazer in a trend now sweeping through parts of the continent.
In Nairobi, the Central Bank of Kenya (CBK) has confirmed that it is preparing to incorporate gold into its foreign reserves portfolio. The move, according to CBK Governor Kamau Thugge, will help diversify the country’s assets and protect the Kenyan shilling from continued depreciation.
“We’re ready to move,” Thugge told Bloomberg in an interview in Washington. “I’m hoping that we can do it as soon as is practical because we’re ready to move.”
The CBK has already held talks with the Bank of England regarding potential bullion storage arrangements. Thugge also acknowledged the challenges of entering the market late, given the recent surge in global gold prices.
“Those who got in early have made a killing. Those who get in late can also be killed,” he said, referring to the volatility of gold markets.
Kenya’s strategy mirrors Ghana’s in intent: to reduce reliance on the US dollar, diversify reserves, and create a buffer against global financial instability.
Nigeria is also taking decisive steps to strengthen its financial resilience. The Federal Government this week announced a strategic gold acquisition programme through the Central Bank of Nigeria (CBN), aimed at using locally mined gold to increase reserves and reduce pressure on the naira.
Speaking at the 10th Nigeria Mining Week in Abuja, the Minister of Solid Minerals Development, Dr. Oladele Alake, said the initiative aligns with the government’s broader economic diversification agenda.
“This initiative allows us to purchase gold from local artisanal miners using naira, instead of sourcing dollars to buy gold internationally,” Dr. Alake explained. “Once the gold is acquired, it is added directly to the Central Bank of Nigeria’s foreign reserves. It’s one of the fastest ways to reflect growth in our reserves.”
By sourcing gold domestically, Nigeria hopes to conserve foreign currency, stimulate local mining, and insulate the economy from dollar shortages that have contributed to exchange rate instability.