The Central Bank of Nigeria (CBN) says Nigeria’s net foreign exchange (FX) reserves (NFER) stood at $23.11 billion in 2024, marking the highest level in three years.
Net international reserves are defined as the difference between reserve assets and reserve liabilities.
According to the CBN, NFER was $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The NFER, which adjusts gross reserves for near-term liabilities such as foreign exchange (FX) swaps and forward contracts, is considered a more accurate indicator of the country’s ability to meet immediate external obligations.
Additionally, gross external reserves rose to $40.19 billion at the end of last year, up from $33.22 billion at the end of 2023.
The CBN attributed the increase in reserves to strategic policy measures, including a substantial reduction in short-term FX liabilities, particularly swaps and forward obligations.
“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,” the bank said.
“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.”
Olayemi Cardoso, CBN’s governor, described the progress as the result of deliberate policy choices aimed at stabilising the economy.
“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,” Cardoso said.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
CBN noted that reserves have continued to strengthen in 2025.
The bank said while the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact.
The regulator added that the reserves are expected to continue improving over the second quarter of this year.
“Going forward, 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 bank said.
The CBN reaffirmed its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.
Nigeria’s foreign reserves had depreciated by $2.55 billion in the first quarter (Q1) of 2025 to $38.33 billion on March 27.
