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Nigeria’s Central Bank (CBN) has achieved a significant milestone, with the country’s net foreign exchange reserves reaching $23.11 billion at the end of 2024. This marks the highest level in three years, signaling a major improvement in Nigeria’s external financial position.
The CBN attributes this success to deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability. Governor Olayemi Cardoso emphasized that this improvement is not accidental, but rather the outcome of strategic measures implemented by the CBN.
One key factor contributing to this growth is the substantial reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations. The CBN has also implemented measures to boost forex market confidence and reserves, alongside increased non-oil foreign exchange inflows.
The net foreign exchange reserves (NFER) have shown a significant increase from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021. Gross external reserves have also climbed to $40.19 billion at the end of 2024, up from $33.22 billion the previous year.
While reserves declined in the first quarter of 2025 due to seasonal factors and foreign debt interest payments, the CBN anticipates a “steady uptick” in reserves throughout the second quarter. This growth is expected to be supported by increased oil output and economic diversification.
The CBN’s efforts to rebuild confidence and reduce vulnerabilities have been successful, and the bank remains committed to sustaining this progress. Governor Cardoso emphasized the importance of transparency, discipline, and market-driven reforms in maintaining stability and attracting investment.
This development is crucial for Nigeria’s economic outlook, offering a stronger foundation for future stability and growth. The CBN’s achievements demonstrate the effectiveness of deliberate policy choices and strategic measures in improving the country’s external financial position.
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