Nigeria’s net foreign reserves surge to $23.11 billion, highest in over three years –CBN
Nigeria’s Net Foreign Exchange Reserve (NFER) reached $23.11 billion by the end of 2024, marking its highest level in more than three years.
This development underscores a significant improvement in the nation’s external liquidity, a decline in short-term financial obligations, and an increase in investor confidence.
According to data from the Central Bank of Nigeria (CBN), this figure represents a considerable rise from $3.99 billion at the close of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The NFER metric, which deducts near-term liabilities such as FX swaps and forward contracts from gross reserves, is considered a more precise measure of Nigeria’s immediate foreign exchange availability.
Additionally, total external reserves saw an upward trajectory, climbing to $40.19 billion from $33.22 billion recorded at the end of 2023.
The CBN attributed this growth to strategic policies aimed at cutting short-term foreign exchange liabilities, specifically swaps and forward obligations.
The central bank highlighted that policy interventions designed to restore confidence in the FX market, along with increased foreign exchange inflows—especially from non-oil sectors—played a crucial role in strengthening reserves.
These efforts have led to a more robust and transparent reserve position, enhancing Nigeria’s resilience to external financial shocks.
CBN Governor Olayemi Cardoso emphasized that the improvement in net reserves resulted from deliberate economic strategies focused on boosting confidence, mitigating financial risks, and ensuring long-term stability.
Looking ahead, the CBN forecasts continued reserve growth, supported by increased oil production and a favourable trade environment that is expected to drive non-oil foreign exchange earnings and diversify Nigeria’s inflows.
