The Central Bank of Nigeria (CBN), on Tuesday reported a substantial improvement in its Net Foreign Exchange Reserve (NFER) position at $23.11bn as of the end of 2024, the highest level in over three years.
The growth, representing a marked increase from $3.99bn at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021, the CBN said in a statement, reflects a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.
NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is widely regarded as a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations.
Gross external reserves during the period, it added, also rose to $40.19bn, from $33.22bn at the close of 2023, the function of a combination of what the apex bank termed strategic measures it has undertaken, such as the deliberate and substantial reduction in short-term foreign exchange liabilities – notably swaps and forward obligations.
The strengthening, it continued, was also spurred by policy actions to rebuild confidence in the FX market and increase reserve buffers, along with recent improved foreign exchange inflows – particularly from non-oil sources.
The result, the statement continued, is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks. The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.
It quoted CBN Governor, Olayemi Cardoso, as saying the improvement in net reserves is not accidental, but “the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability,” . “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
Meanwhile, reserves have continued to strengthen in 2025, with first quarter figures reflecting 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 says 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 assured of its continued commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.
