Nigeria’s foreign reserves have experienced a significant rebound, with the Net Foreign Exchange Reserve (NFER) standing at $23.11 billion by the close of 2024.
This milestone, the highest in over three years, signals enhanced financial stability, declining short-term external obligations, and renewed confidence from investors.
The Central Bank of Nigeria (CBN) reported a steady increase in NFER, which had previously stood at $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
As a measure that accounts for outstanding financial commitments such as FX swaps and forward contracts, NFER provides a clearer assessment of the country’s readily available foreign exchange reserves.
Alongside this improvement, total gross reserves surged to $40.19 billion from $33.22 billion in the previous year.
The CBN attributed this positive trend to its targeted efforts in reducing short-term forex liabilities and implementing economic policies aimed at bolstering confidence in Nigeria’s FX market.
The central bank also highlighted an upturn in foreign exchange inflows, particularly from non-oil sources, which contributed to reserve accumulation.
These initiatives, combined with disciplined macroeconomic management, have positioned Nigeria to better handle external economic shocks and currency fluctuations.
CBN Governor Olayemi Cardoso affirmed that these gains were a result of structured policy actions designed to rebuild financial credibility and support long-term economic resilience.
“This achievement stems from intentional policy measures that prioritize stability, transparency, and disciplined economic reforms,” he stated.
Despite seasonal and transitional financial obligations in early 2025, the CBN remains optimistic about further reserve growth.
It projects a continuous rise, fueled by stronger oil production levels and a more favourable export climate that will boost Nigeria’s non-oil foreign exchange revenues.
The CBN reiterated its commitment to prudent reserve management, transparent financial reporting, and policies that sustain a stable exchange rate while fostering an attractive investment environment.