Nigeria’s Net Foreign Exchange Reserve (NFER) at the end of 2024 stood at $23.11 billion, marking the highest level in over three years. This reflects a significant improvement in the country’s external liquidity, a reduction in short-term obligations, and a boost in investor confidence.
A statement from the Central Bank of Nigeria (CBN) indicated that the increase in NFER represents 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 near-term liabilities like FX swaps and forward contracts, is considered a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations.
Gross external reserves also rose to $40.19 billion, up from $33.22 billion at the end of 2023.
The increase in reserves is attributed to a combination of strategic measures implemented by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations.
The CBN also stated that the strengthening of reserves was driven by policy actions aimed at rebuilding confidence in the FX market and boosting reserve buffers, along with recent improvements in foreign exchange inflows, especially from non-oil sources.
This has led to a stronger and more transparent reserves position, better positioning Nigeria to withstand external shocks. The expansion of reserves took place even as the CBN continues to reduce short-term liabilities, enhancing the overall quality of the reserve position.
“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, commented. “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
Reserves have continued to strengthen in 2025. While the first-quarter figures showed some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remain strong. Reserves are expected to continue improving in the second quarter of the year.
Looking ahead, the CBN anticipates a steady increase in reserves, supported by improved oil production levels and a more favourable export growth environment, which is expected to boost non-oil foreign exchange earnings and diversify external inflows.
“The CBN remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience,” the statement added.