The Central Bank of Nigeria (CBN) has reported a significant surge in its Net Foreign Exchange Reserve (NFER) position, marking the highest level in over three years and signaling improved external liquidity, reduced short-term liabilities, and renewed investor confidence. As of the end of 2024, NFER stood at $23.11 billion, a sharp increase from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
This metric, which adjusts gross reserves by accounting for short-term obligations such as FX swaps and forward contracts, is widely considered a more accurate measure of Nigeria’s immediate foreign exchange buffers.
The CBN also reported that gross external reserves climbed to $40.19 billion, up from $33.22 billion at the close of 2023. This growth reflects a combination of strategic policy measures, including a significant reduction in short-term FX liabilities—such as swaps and forward obligations—and efforts to rebuild confidence in the FX market. Additionally, improved foreign exchange inflows, particularly from non-oil sources, contributed to the boost in reserves.
“This improvement in our net reserves is the result of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability,” said CBN Governor Olayemi Cardoso. “We remain committed to sustaining this progress through transparency, discipline, and market-driven reforms.”
The positive momentum has continued into 2025. While the first quarter saw some seasonal and transitional adjustments, including major interest payments on foreign-denominated debt, the underlying fundamentals remain strong, with reserves expected to keep improving in the second quarter.
Looking ahead, the CBN anticipates a steady rise in reserves, driven by improved oil production and stronger non-oil FX earnings, which are expected to diversify external inflows. The apex bank reiterated its commitment to prudent reserve management, transparent reporting, and macroeconomic policies aimed at stabilizing the exchange rate, attracting investment, and enhancing long-term economic resilience.
 has reported a significant surge in its Net Foreign Exchange Reserve (NFER) position, marking the...){kind=link}