Nigeria’s Net Foreign Exchange Reserve (NFER) has surged to $23.11 billion as of the end of 2024, reaching its highest level in over three years.
The Central Bank of Nigeria (CBN) attributed this increase to “strategic policy measures aimed at improving external liquidity, reducing short-term obligations, and restoring investor confidence.”
This means the increase in Nigeria’s Net Foreign Exchange Reserves (NFER) has helped improve the country’s ability to handle international financial transactions, reduced the amount of money it owes in the short term, and made investors more confident in the economy.
According to the CBN, the NFER represents a significant rise from $3.99 billion at the close of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The NEFR adjusts gross reserves by accounting for near-term liabilities such as foreign exchange (FX) swaps and forward contracts, and it is considered a more precise measure of Nigeria’s ability to meet immediate external obligations.
In addition to the increase in net reserves, Nigeria’s gross external reserves also expanded to $40.19 billion by the end of 2024, compared to $33.22 billion recorded at the end of the previous year.
This development, the apex bank, said reflects a combination of strategic actions undertaken by the CBN, including a substantial reduction in short-term FX liabilities, particularly swaps and forward contracts.
The apex bank attributed the improved reserve position to policy interventions designed to stabilize the FX market, strengthen confidence, and enhance external liquidity. These measures, combined with rising foreign exchange inflows—particularly from non-oil sources—have contributed to a more robust reserve framework.
The CBN noted that these efforts have led to a stronger and more transparent reserve position, equipping Nigeria to better withstand external economic shocks. Despite the ongoing reduction in short-term liabilities, the overall reserve quality has continued to improve.
CBN Governor Olayemi Cardoso stated that the surge in net reserves was the result of “deliberate policy actions aimed at rebuilding confidence, reducing economic vulnerabilities, and establishing a foundation for long-term stability.” He reiterated the bank’s commitment to sustaining these gains through transparent operations, fiscal discipline, and market-driven reforms.
The statement said reserves have continued to strengthen in 2025. “While first-quarter figures reflected seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remain stable” it read.
The CBN projects a continued increase in reserves throughout the second quarter, supported by improved oil production and a favorable export growth environment that is expected to strengthen non-oil foreign exchange earnings.
Looking ahead, the CBN said it “remains focused on prudent reserve management, transparent financial reporting, and macroeconomic policies that promote exchange rate stability, attract investment, and enhance long-term economic resilience.”