The Central Bank of Nigeria (CBN) has reported a substantial improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024, reflecting a marked increase in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.
According to the CBN, NFER stood at $23.11 billion, the highest level in over three years. This represents 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 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.
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Gross external reserves also rose 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.
The strengthening was also driven by policy actions to rebuild confidence in the FX market, increase reserve buffers, and improve foreign exchange inflows, particularly from non-oil sources.
The result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks.
This expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.
“This improvement in our net reserves is not accidental; it is the result of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability,” said Olayemi Cardoso, Governor of the Central Bank of Nigeria.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms,” he added.
Reserves have continued to strengthen in 2025. While the first-quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remain intact. Reserves are expected to continue improving through the second quarter of this year.
Looking ahead, 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 CBN stated that 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.
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