The Central Bank of Nigeria (CBN) has reported that the country’s Net Foreign Exchange Reserve (NFER) rose to $23.11 billion by the end of 2024, marking its highest level in over three years.
In a statement released in Abuja on Tuesday, April 1, the apex bank attributed the increase to improved external liquidity, reduced short-term obligations, and renewed investor confidence.
The NFER, which reflects near-term liabilities like FX swaps and forward contracts, provides a clearer picture of Nigeria’s available foreign exchange buffers.
According to the CBN, the latest figure represents a significant recovery from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
Additionally, gross external reserves climbed to $40.19 billion, up from $33.22 billion at the end of 2023.
CBN Governor Olayemi Cardoso credited the improvement to deliberate policy measures aimed at long-term economic stability.
READ ALSO: CBN Sets January 31 Deadline for FX Market Compliance Reports
“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,” he stated.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
The CBN outlined key strategies behind the increase, including: Reducing short-term FX liabilities such as swaps and forward contracts, Strengthening confidence in the FX market through transparency and reforms, Boosting reserve buffers to solidify Nigeria’s economic position, Increasing FX inflows from non-oil sources.
Looking ahead, the CBN expects further reserve growth in 2025, driven by improved oil production, stronger non-oil FX earnings, and more diversified external inflows.
The apex bank reaffirmed its commitment to prudent reserve management, transparent reporting, and policies that support a stable exchange rate, attract investment, and enhance Nigeria’s long-term economic resilience.