ABUJA, Nigeria – The Central Bank of Nigeria (CBN) has announced a substantial improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024, indicating a boost in the country’s external liquidity and investor confidence.
According to the CBN, the NFER reached $23.11 billion at the end of 2024, the highest level in more than three years. This represents a significant increase compared to $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021. NFER, which takes into account near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of the foreign exchange available for immediate external obligations.
The CBN also reported that gross external reserves rose to $40.19 billion, up from $33.22 billion at the close of 2023.
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The increase in reserves is attributed to strategic measures taken by the CBN, including the reduction of short-term foreign exchange liabilities such as swaps and forward obligations.
CBN Governor Olayemi Cardoso stated that the improvement in net reserves was the result of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.
While the CBN noted that first-quarter figures for 2025 reflect some seasonal adjustments, including interest payments on foreign debt, the underlying fundamentals remain strong, and reserves are projected to improve further in the second quarter of the year.
The CBN has stated its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and foster long-term resilience.
