Nigeria’s Net Foreign Exchange Reserve (NFER) as of the end of 2024 stood at $23.11 billion, the highest level in over three years, reflecting a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.
According to a statement from the Central Bank of Nigeria (CBN), the increase in reserves reflects a rise from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
NFER, which adjusts gross reserves to account for short-term liabilities like FX swaps and forward contracts, is considered a more accurate reflection of the foreign exchange reserves available to meet immediate external obligations.
Gross external reserves also grew to $40.19 billion, up from $33.22 billion at the close of 2023.
This growth in reserves is attributed to strategic actions by the CBN, including a targeted reduction in short-term foreign exchange liabilities, particularly swaps and forward contracts.
The CBN also highlighted that the strengthening of reserves was fueled by policies designed to restore confidence in the foreign exchange market, increase reserve buffers, and boost foreign exchange inflows, particularly from non-oil sectors.
The result is a more robust and transparent reserve position, better positioning Nigeria to handle external shocks.
This growth in reserves has occurred alongside the CBN’s ongoing efforts to reduce short-term liabilities, thereby enhancing the overall quality of the reserve position.
Governor of the CBN, Olayemi Cardoso, stated, “This improvement in our net reserves is no accident; it is the result of intentional policy choices focused on rebuilding confidence, reducing vulnerabilities, and setting the stage for long-term stability. We remain committed to sustaining this progress through transparency, discipline, and market-driven reforms.”
Reserves have continued to strengthen in 2025. While the first-quarter numbers reflect some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remain strong, and reserves are expected to keep improving through the second quarter of this year.
Looking ahead, the CBN expects a consistent rise in reserves, supported by higher oil production levels and a favorable export growth environment that will enhance non-oil foreign exchange earnings and diversify external inflows.
“The CBN is committed to prudent reserve management, transparent reporting, and macroeconomic policies that foster a stable exchange rate, attract investment, and build long-term resilience,” the statement concluded.
