Nigeria’s net foreign exchange reserves climbed to $23.11 billion at the end of 2024—the highest level in three years—according to a new report from the Central Bank of Nigeria (CBN). This significant milestone signals an improved outlook for the country’s external financial position.

In contrast, Nigeria’s net reserves were just $3.99 billion at the end of 2023, having declined steadily in previous years to $8.19 billion in 2022 and $14.59 billion in 2021. The net reserve figure accounts for near-term liabilities such as currency swaps and forward contracts, giving a more accurate picture of Nigeria’s available foreign exchange.

The CBN credited the increase to a substantial reduction in short-term FX obligations, especially swaps and forward commitments. The bank also pointed to its broader strategy of boosting investor confidence in the foreign exchange market and increasing non-oil forex inflows.

“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,” said CBN Governor Olayemi Cardoso.

He emphasized the bank’s ongoing commitment to sustaining progress through transparency, fiscal discipline, and market-led reforms.

In addition to the net reserves, Nigeria’s gross external reserves also rose to $40.19 billion by the end of 2024, up from $33.22 billion the year before.

Though a dip was recorded in the first quarter of 2025—attributed to seasonal factors and interest payments on external debt—the CBN forecasts a steady rebound in the second quarter, driven by higher oil production and an increase in non-oil export earnings.

This rise in reserves reflects a cautious optimism in Nigeria’s financial trajectory, offering a sense of hope amid ongoing economic reforms.

Source: Reuters

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