The Central Bank of Nigeria (CBN) has reported a Net Foreign Exchange Reserve (NFER) of $23.11 billion as of the end of 2024, this marks highest level in over three years at CBN.
According to a statement released in Abuja by CBN, the bank described the increase as a reflection of efforts in improved external liquidity, reduced short-term obligations, and renewed investor confidence in Nigeria’s economy.
The NFER, which accounts for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of Nigeria’s available foreign exchange buffers.
According to the statement, the $23.11 billion figure represents a significant recovery from: $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
However, the gross external reserves rose to $40.19 billion, compared to $33.22 billion at the close of 2023.
The CBN attributed the improvement to deliberate policy actions, including: Reducing short-term foreign exchange liabilities (notably FX swaps and forward contracts), Rebuilding confidence in the FX market through transparency and reforms, Increasing reserve buffers to strengthen Nigeria’s economic position, Boosting FX inflows from non-oil sources
The CBN projects further reserve growth in 2025, with expectations of: Improved oil production levels, Stronger non-oil FX earnings and More diversified external inflows.
The apex bank reaffirmed its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and enhance Nigeria’s long-term economic resilience
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