The Central Bank of Nigeria (CBN) has reported a Net Foreign Exchange Reserve (NFER) of $23.11 billion as of the end of 2024, marking the highest level in over three years.

In a statement released in Abuja, the apex bank described the increase as a reflection of improved external liquidity, reduced short-term obligations, and renewed investor confidence in Nigeria’s economy.

The NFER, which accounts for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of Nigeria’s available foreign exchange buffers.

According to the CBN, the $23.11 billion figure represents a significant recovery from: $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

Additionally, gross external reserves rose to $40.19 billion, compared to $33.22 billion at the close of 2023.

The CBN attributed the improvement to deliberate policy actions, including: Reducing short-term foreign exchange liabilities (notably FX swaps and forward contracts), Rebuilding confidence in the FX market through transparency and reforms, Increasing reserve buffers to strengthen Nigeria’s economic position, Boosting FX inflows from non-oil sources.

CBN Governor: “This Progress Is No Accident”

CBN Governor Olayemi Cardoso emphasized that the improved reserves position resulted from deliberate policy choices aimed at long-term stability.

“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,” he stated.

“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”

The CBN projects further reserve growth in 2025, with expectations of: Improved oil production levels, Stronger non-oil FX earnings and More diversified external inflows.

The CBN hinted that reserves would continue to strengthen in 2025.

While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact, and reserves are expected to continue improving over the second quarter of this year.

Going forward, the CBN said it anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment expected to boost non-oil FX earnings and diversify external inflows.

“The CBN remains committed to prudent reserve management, transparent reporting and macroeconomic policies that support a stable exchange rate, attract investment and build long-term resilience,” it stated.

https://www.vanguardngr.com/2025/04/cbn-reports-23bn-net-foreign-exchange-reserves-strongest-in-over-three-years/
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