Nigeria’s net foreign exchange reserves rose significantly to $23.11bn at the end of 2024, marking the highest level in over three years, according to the Central Bank of Nigeria.
In a press statement on Tuesday, the apex bank noted that this represents a significant jump from $3.99bn recorded at the end of 2023, $8.19bn in 2022, and $14.59bn in 2021.
The statement read, “NFER stood at $23.11bn, the highest level in over three years, a marked increase from $3.99bn at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021.”
The NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is regarded as a more accurate measure of the country’s foreign exchange buffers available to meet immediate external obligations.
The CBN also reported that Nigeria’s gross external reserves increased to $40.19bn as of December 2024, compared to $33.22bn at the end of 2023.
This improvement reflects deliberate measures taken by the CBN to reduce short-term foreign exchange liabilities, particularly FX swaps and forward obligations.
According to the statement, CBN Governor Olayemi Cardoso attributed the increase to strategic policy decisions aimed at enhancing investor confidence, reducing vulnerabilities, and building a more robust reserve position.
