Nigeria’s net foreign exchange reserve hits highest level in 3 years — CBN

The Central Bank of Nigeria (CBN) has reported the highest Net Foreign Exchange Reserve (NFER) position as of the end of 2024.

According to CBN data, NFER stood at $23.11 billion, the highest level in over three years.

The improvement marked an increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

This reflects a substantial improvement in the country’s external liquidity, reduced short-term obligations and renewed investor confidence.

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

The data further showed that gross external reserves also increased to $40.19 billion, compared to $33.22 billion at the close of 2023.

The increase in reserves reflects a combination of strategic measures undertaken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities—notably swaps and forward obligations.

According to the CBN, the strengthening was also 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.

Reacting to the development, the apex bank governor, Olayemi Cardoso, said the improvement in NFER is not accidental but the result of deliberate policies by the apex bank.

“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,” he stated.