The Central Bank of Nigeria (CBN) has announced a significant improvement in the country’s Net Foreign Exchange Reserves (NFER), marking the highest level in over three years. This increase reflects enhanced external liquidity, reduced short-term liabilities, and renewed investor confidence.
NFER now stands at $23.11 billion (as of year-end 2024), a major jump from:
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$3.99 billion in 2023
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$8.19 billion in 2022
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$14.59 billion in 2021
The gross external reserves also rose to $40.19 billion from $33.22 billion at the end of 2023.
Why the Increase?
- CBN’s reduction of short-term FX liabilities, including swaps and forward contracts.
- Policy measures to rebuild investor confidence and strengthen FX buffers.
- Higher foreign exchange inflows, particularly from non-oil sources.
CBN Governor’s Statement
CBN Governor Olayemi Cardoso attributed the progress to deliberate policy choices aimed at: Rebuilding confidence, reducing economic vulnerabilities and ensuring long-term financial stability
“This improvement in our net reserves is not accidental; it is the outcome of strategic policies focused on transparency, discipline, and market-driven reforms,” Cardoso stated.
Future Outlook
Reserves expected to rise further in Q2 2025 due to: Increased oil production, Higher non-oil exports and continued macroeconomic stability. The CBN remains committed to prudent reserve management, transparent reporting, and policies that stabilize the exchange rate, attract investment, and build long-term economic resilience.
