April 2, 2025
The Central Bank of Nigeria, CBN, said it has recorded a substantial improvement in its Net Foreign Exchange Reserve, NFER, position as of the end of 2024.
CBN stated that the achievement reflected a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence in the system.
As monitored on Marketforces Africa, the apex bank, said that NFER stood at $23.11 billion, the highest level in over three years, a marked increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
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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.
Gross external reserves also 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 strengthening was also driven 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.
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The result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks. The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving 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,” CBN Governor, Olayemi Cardoso, commented.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
