The Central Bank of Nigeria (CBN) has announced that it recorded a Net Foreign Exchange Reserve (NFER) of $23.11 billion in year 2024, the highest in over 3 years.
CBN disclosed this on Tuesday, noting that the success reflects a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.
The increase surpasses the $3.99 billion for year 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
“NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations,” the apex bank said.
According to CBN, the Gross external reserves also increased to $40.19 billion, compared to $33.22 billion at the close of 2023.
It explained that the increase in reserves reflected a combination of strategic measures undertaken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities – notably swaps and forward obligations.
The monetary authority revealed that the strengthening was also spurred by policy actions to rebuild confidence in the foreign exchange market and increase reserve buffers, along with recent improved foreign exchange inflows – particularly from non-oil sources.
“The result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks. The expansion occurred even as the CBN continued to reduce short-term liabilities, thereby improving the overall quality of the reserve position.”
Speaking on the feat, the Governor of CBN, Mr. Olayemi Cardoso said, “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.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
The apex bank stated that reserves have continued to strengthen in 2025, stressing that “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.”
It noted that it anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment that is expected to boost non-oil FX earnings and diversify external inflows.
The CBN reiterated its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.
