CBN’s Net Foreign Exchange Reserves Reach $23.11bn
Economic Issues
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has announced that its Net Foreign Exchange Reserve (NFER) reached $23.11 billion as of the end of 2024, marking the highest level in over three years.
This significant increase indicates a substantial improvement in the country’s external liquidity, a reduction in short-term obligations, and renewed investor confidence.
The CBN said this figure represents a marked increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021. NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of the foreign exchange buffers available for immediate external obligations.
Gross external reserves on the other hand also increased to $40.19 billion, compared to $33.22 billion at the close of 2023.
The apex bank noted that the increase in reserves resulted from strategic measures implemented by the CBN, including a significant reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations.
The strengthening also resulted from policy actions aimed at rebuilding confidence in the FX market and increasing reserve buffers, along with improved foreign exchange inflows, especially from non-oil sources.
“This has led to a stronger and more transparent reserves position, better equipping Nigeria to handle external shocks. The expansion occurred as the CBN continued to reduce short-term liabilities, improving the overall quality of the reserve position” the CBN said.
“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,” Governor of the Central Bank of Nigeria, Olayemi Cardoso, stated. “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
The CBN said reserves have continued to strengthen in 2025. “While first-quarter figures reflected seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain strong, and reserves are expected to continue improving in the second quarter.”
The CBN anticipates a steady increase in reserves, supported by improved oil production levels and a more favorable export growth environment, which is expected to boost non-oil FX earnings and diversify external inflows.
The Bank said it remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.