Nigeria’s Net Foreign Exchange Reserves (NFER) reached $23.11 billion at the end of 2024, the highest level in over three years, according to the Central Bank of Nigeria (CBN).
In a statement on Tuesday, the CBN highlighted that this marks a significant increase from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The NFER, which adjusts gross reserves to reflect near-term liabilities such as FX swaps and forward contracts, provides a more accurate picture of the country’s available foreign exchange to meet immediate obligations.
The CBN also reported that Nigeria’s total external reserves rose to $40.19 billion in December 2024, up from $33.22 billion in 2023. This growth is attributed to strategic efforts by the CBN to reduce short-term foreign exchange liabilities, particularly FX swaps and forward obligations.
CBN Governor Olayemi Cardoso credited the increase to targeted policies designed to boost investor confidence, reduce vulnerabilities, and strengthen Nigeria’s reserve position. He emphasized that the improvement in net reserves was the result of deliberate decisions aimed at rebuilding confidence and laying the foundation for long-term stability.
Several factors contributed to the rise in NFER, including a reduction in short-term FX liabilities, which had previously posed liquidity risks, and a boost in foreign exchange inflows from non-oil sources. Additionally, policy reforms in the FX market helped attract more sustainable foreign exchange inflows.
The CBN expressed optimism that this positive trend will continue into 2025, driven by improved oil production and favorable conditions in non-oil exports. The bank expects these factors to further strengthen Nigeria’s external liquidity and maintain exchange rate stability.
Governor Cardoso reiterated the CBN’s commitment to sound reserve management, transparency in reporting, and policies aimed at economic stability, investment attraction, and long-term resilience.