The Central Bank of Nigeria (CBN) has recorded a major boost in the country’s foreign exchange reserves, marking the highest level in over three years. According to the latest report, Nigeria’s Net Foreign Exchange Reserve (NFER) stood at $23.11 billion by the end of 2024, a sharp rise from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
This significant increase signals improved external liquidity, reduced short-term financial obligations, and renewed investor confidence in the Nigerian economy. The gross external reserves also grew to $40.19 billion, up from $33.22 billion at the close of 2023.
The CBN attributes this progress to deliberate policies aimed at strengthening the nation’s reserve position. A key factor was the reduction of short-term foreign exchange liabilities, including swaps and forward contracts. Additionally, strategic policy actions to restore confidence in the forex market and boost inflows; especially from non-oil sources, played a major role in the surge.
CBN Governor Olayemi Cardoso described the improvement as a direct result of careful policy choices designed to rebuild trust, stabilize the financial system, and strengthen Nigeria’s ability to withstand external economic shocks.
“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.
He added that the CBN remains committed to transparency, discipline, and market-driven reforms to sustain this positive trend.
Looking ahead, the central bank expects foreign reserves to continue growing in 2025, driven by rising oil production and stronger non-oil exports, which will further diversify Nigeria’s forex earnings. Despite seasonal adjustments and debt repayments in the first quarter of 2025, the CBN remains confident that the upward trend will continue in the coming months.
The bank reaffirmed its commitment to prudent reserve management and economic policies that will stabilize the exchange rate, attract investments, and build long-term financial strength for the country.