The Central Bank of Nigeria, CBN, has reported that the country’s external reserves grew by 5.6 per cent (approximately $2.2 billion) to reach $38.8 billion in 2024.
The apex bank disclosed this in its recently released consolidated and separate financial statements for the year ended December 2024.
This indicates a significant increase in the nation’s external reserves, rising from $36.6 billion in 2023 to $38.8 billion in 2024.
According to CBN, the growth in Nigeria’s external reserves in 2024 was driven by improved inflows from portfolio investors, diaspora remittances, and federal government receipts. This was attributed to renewed confidence in the economy, fostered by enhanced coordination with the Nigerian National Petroleum Company, NNPC and strategic diaspora engagement.
“This is largely attributable to improvement in accretion to external reserves from portfolio investors, diaspora remittances, and federal government receipts following improvement in the confidence in the economy facilitated by better coordination with the Nigerian National Petroleum Company (NNPC) and diaspora engagement strategies. Also, proper investment management decisions aimed at boosting the reserves of the bank.
“This performance reflects the CBN’s firm commitment to external sector stability, ensuring Nigeria is better positioned to meet its international obligations, stabilise the Naira, and boost macroeconomic confidence,” the apex bank’s statement partly read.
The financial statements also revealed a marked improvement in bottom-line performance, recording a surplus of N165 billion in 2024, compared to a deficit of N1.3 trillion in 2023.
“This turnaround is a direct consequence of effective containment of expenditure, gains on investments made by the bank and increased income from foreign exchange transactions,” the statement reads.
Furthermore, CBN recorded a reduction in loans and receivables, which declined to N11.9 trillion in 2024 from N16.1 trillion in 2023.
According to the statement: “This is primarily attributed to significant recoveries from earlier intervention lending programmes, a deliberate policy shift away from intervention lending, and monetary financing through ways and means in line with the bank’s new stance on allowing market mechanisms to drive credit allocation and financial sector development.”
The financial statement also noted that other operating expenses in 2024 were well-managed and optimised, reflecting a cost-conscious operational culture.
Meanwhile, the apex bank reported a substantial increase in its operating income, rising to N15.23 trillion in 2024 from N5.89 trillion in the previous year.
