Abuja, April 2, 2025 – Nigeria’s Net Foreign Exchange Reserves (NFER) rose to $23.11 billion as of December 2024.
The Central Bank of Nigeria (CBN) disclosed this in a press statement of Tuesday
It said this was the highest level in the last three years, explaining that it was a remarkable achievement over the $3.99 billion recorded at the end of 2023, $8.19 billion in 2022 and the $14.59 billion in 2021.
The CBN also said the gross external reserves increased to $40.19 billion as of December 2024, up from $33.22 billion at the close of the previous year.
It attributed the development to the CBN’s deliberate measures to reduce short-term foreign exchange liabilities, particularly FX swaps and forward obligations.
Olayemi Cardoso, the CBN Governor attributed the increase to strategic policy decisions aimed at enhancing investor confidence, reducing vulnerabilities, and building a more robust reserve position.
“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.”
The apex bank also attributed some other factors that contributed to the improved NFER position as reduction in short-term FX liabilities as the bank significantly reduced its exposure to short-term foreign exchange obligations, such as swaps and forwards, which previously posed risks to liquidity.
The CBN also identified the increased foreign exchange inflows from non-oil sources as the boost in foreign exchange inflows from non-oil sectors also strengthened the reserve position.
It also identified economic reforms as the CBN implemented policy measures aimed at restoring trust in the foreign exchange market which attracted more sustainable and stable inflows.
The apex bank said the result of all these was a more transparent and resilient reserve profile that better equips Nigeria to withstand external shocks, even as the CBN continues to reduce short-term obligations.
The CBN said it was optimistic about sustaining the upward trend in 2025. While the first quarter saw some seasonal adjustments, including significant interest payments on foreign-denominated debt, the underlying economic fundamentals remain strong.
It said the reserves were expected to maintain an upward trajectory driven by improved oil production and a more favourable export environment, particularly in non-oil sectors.
These factors are likely to enhance Nigeria’s external liquidity and support a stable exchange rate.
Cardoso reiterated the commitment of the CBN to prudent reserve management, transparent reporting, and macroeconomic policies aimed at maintaining stability, attracting investment, and building long-term economic resilience.
