Nigeria’s net foreign exchange reserves (NFER) rose sharply to $23.11 billion at the end of 2024, marking the highest in three years, according to the Central Bank of Nigeria (CBN).
The CBN’s statement on Tuesday reveals that this was a significant increase from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
NFER, which accounts for the country’s foreign exchange buffers available to meet immediate external obligations, adjusts gross reserves by factoring in near-term liabilities like FX swaps and forward contracts.
The statement also discloses that Nigeria’s gross external reserves reached $40.19 billion by December 2024, up from $33.22 billion at the end of 2023. This improvement reflects measures by the CBN to reduce short-term foreign exchange liabilities and strengthen Nigeria’s reserve position.
CBN Governor Olayemi Cardoso attributed the increase to strategic policy decisions aimed at boosting investor confidence, mitigating vulnerabilities, and ensuring long-term economic stability.
The rise in NFER was fueled by reduced short-term FX liabilities, greater non-oil foreign exchange inflows, and policy reforms that restored confidence in the FX market.
Looking ahead, the CBN expressed optimism that this upward trajectory will continue in 2025, driven by improved oil production, favorable export conditions, and sustainable non-oil inflows.
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