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By Lizzy Chirkpi
The Central Bank of Nigeria (CBN) has announced a significant boost to its Net Foreign Exchange Reserve (NFER) position, after posting a figure of $23.11 billion as of the end of 2024. This marks the highest level recorded in over three years, showcasing a substantial improvement in the nation’s external financial standing.
The NFER, which stood at $23.11bn, represents a remarkable increase from $3.99bn at year-end 2023.
It previously stood at $8.19bn in 2022, and $14.59bn in 2021.
A statement by the apex bank said the surge indicates a “substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.”
The NFER provides a more accurate representation of the foreign exchange buffers available for immediate external obligations, as it adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts.
In parallel, gross external reserves also experienced an increase, reaching $40.19bn, compared to $33.22bn at the close of 2023.
The CBN attributed this growth in reserves to a combination of “strategic measures undertaken,” including a “deliberate and substantial reduction in short-term foreign exchange liabilities – notably swaps and forward obligations.”
The strengthening was further “spurred by policy actions to rebuild confidence in the FX 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.”
CBN Governor, Olayemi Cardoso emphasised the strategic nature of the achievement, saying, “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.”
Looking ahead, the CBN expressed optimism regarding the continued growth of reserves. “Reserves have continued to strengthen in 2025. 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.”
The CBN further projected, “We anticipate 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 bank pledged its commitment to “prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.”