The Central Bank of Nigeria (CBN) has disclosed that Nigeria’s net foreign exchange reserves rose significantly to $23.11 billion at the end of 2024.
The apex bank said in a press statement that this marks the highest level in over three years and represents a significant rise from $3.99 billion recorded at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
“NFER stood at $23.11bn, the highest level in over three years, a marked increase from $3.99bn at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021,” the CBN stated.
The NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is regarded as a more accurate measure of the country’s foreign exchange buffers available to meet immediate external obligations.
The CBN also disclosed that Nigeria’s gross external reserves increased to $40.19 billion as of December 2024, compared to $33.22 billion at the end of 2023.
According to the statement, the CBN Governor Olayemi Cardoso attributed the increase to strategic policy decisions aimed at enhancing investor confidence, reducing vulnerabilities, and building a more robust reserve position.
“This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability,” Cardoso stated.
The CBN noted that the improvement in NFER was driven by a combination of factors, including a significant reduction in short-term FX liabilities such as swaps and forwards, which previously posed risks to liquidity.
Also, increased foreign exchange inflows from non-oil sources contributed to strengthening the reserve position.
The bank also credited policy reforms aimed at restoring confidence in the FX market, which helped attract more sustainable inflows and also expressed optimism about sustaining this upward trend in 2025.
While the first quarter showed some seasonal adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remained strong.
Reserves are expected to continue growing, driven by improved oil production levels and a favourable export environment, particularly from non-oil sectors.
The CBN said these factors would enhance Nigeria’s external liquidity and support a stable exchange rate.
Cardoso reiterated the apex bank’s commitment to prudent reserve management, transparent reporting, and macroeconomic policies aimed at maintaining stability, attracting investment, and building long-term economic resilience.
