Nigeria’s Net Foreign Exchange Reserve (NFER), which reflects the country’s external liquidity position, climbed to its strongest level as of the end of 2024, the Central Bank of Nigeria (CBN) has reported.
The CBN said on Tuesday the reserve stood at about $23.11 billion, the highest level in over three years, a significant increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The apex bank explained that the 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.
The substantial improvement in its NFER, the CBN noted, reflects a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence in Nigeria’s economy.
Also, the CBN reported that gross external reserves equally increased 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 CBN said.
“The strengthening was also spurred by policy actions to rebuild confidence in the FX market and increase reserve buffers, along with recent improved foreign exchange inflows – particularly from non-oil sources,” it added.
The result, it pointed out, was a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks.
Besides, the CBN said the expansion occurred even as it continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.
The Governor of the CBN Olayemi Cardoso, described the improvement in the NFER as not accidental, but the outcome of deliberate policy choices by the CBN aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability in the country’s economy.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms,” Cardoso said.
The country’s foreign reserves, he observed, have continued to strengthen in 2025, with the first quarter figures reflecting some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remaining intact, and reserves expected to continue improving over the second quarter of this year.
Going forward, he said the CBN anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment expected to boost non-oil FX 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,” he assured.
