Nigeria’s Net Foreign Exchange Reserve (NFER) reached its highest level in over three years rising to $23.11billion by the end of 2024 according to the Central Bank of Nigeria.
The increase reflects a significant improvement in external liquidity, reduced short-term obligations, and renewed investor confidence.
According to the apex bank, the figure represents a sharp rise from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
Gross external reserves also climbed to $40.19 billion from $33.22 billion at the close of 2023.
The NFER metric, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is widely seen as a more precise measure of Nigeria’s ability to meet immediate external obligations.
The rise in reserves is attributed to a series of strategic actions by the CBN, including a deliberate reduction in short-term FX liabilities such as swaps and forward obligations.
Policy measures to rebuild confidence in the foreign exchange market and improve reserve buffers also contributed to the increase, alongside a boost in non-oil FX inflows.
“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,” CBN Governor Olayemi Cardoso stated.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
Despite seasonal adjustments in the first quarter of 2025, including interest payments on foreign-denominated debt, the underlying fundamentals of Nigeria’s external reserves remain strong.
Cardoso adds that the CBN expects further improvements in the second quarter, driven by higher oil production and a stronger export environment to support non-oil FX earnings and diversify inflows.
“The CBN remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience,” the statement concluded.
