Nigeria’s Net Foreign Exchange Reserve rises to $23.11 billion by the end of 2024, marking a three-year high, with improved external liquidity and investor confidence

The Central Bank of Nigeria (CBN) has announced a significant improvement in the country’s Net Foreign Exchange Reserve (NFER), which stood at $23.11 billion at the close of 2024.

This marks a sharp increase from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021, reflecting a remarkable recovery in Nigeria’s external liquidity.

In a statement issued on Tuesday, the CBN confirmed that the $23.11 billion NFER is the highest level seen in over three years, signalling a stronger financial position for Nigeria.

The central bank attributed this growth to reduced short-term foreign exchange obligations, a surge in investor confidence, and a robust improvement in external liquidity.

NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate indicator of the foreign exchange reserves available to meet immediate external obligations.

The CBN also highlighted that the country’s gross external reserves increased to $40.19 billion by the end of 2024, up from $33.22 billion at the close of the previous year.

The increase in Nigeria’s reserves was credited to a series of strategic policy measures, including a significant reduction in short-term foreign exchange liabilities.

These efforts were complemented by actions aimed at rebuilding confidence in the foreign exchange market, boosting reserve buffers, and increasing 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 CBN stated. “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.”

Olayemi Cardoso, Governor of the CBN, expressed optimism about the nation’s financial future. “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms,” he commented.

Looking ahead, the CBN noted that reserves are expected to continue strengthening through 2025. While the first quarter figures were impacted by seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remain strong.

The bank anticipates further improvements in reserves through the second quarter of 2025, driven by increased oil production levels and a supportive export growth environment that is likely to boost non-oil foreign exchange earnings and diversify external inflows.

The CBN reassured the public that it remains committed to prudent reserve management, transparent reporting, and macroeconomic policies aimed at stabilising the exchange rate, attracting investment, and ensuring long-term economic resilience.