CBN Reports Highest Net Reserve Position in Over Three Years, Signals Economic Strength
Nigeria’s Foreign Reserves Surge Amid Strategic Policy Reforms
The Central Bank of Nigeria (CBN) has announced a remarkable increase in the country’s Net Foreign Exchange Reserve (NFER), marking the strongest position in over three years. As of the end of 2024, NFER surged to $23.11 billion, a significant jump from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
This surge underscores a notable improvement in external liquidity, a reduction in short-term FX liabilities, and a renewed sense of investor confidence in Nigeria’s financial stability.
CBN’s Strategic Policy Actions Drive Growth
The increase in reserves is attributed to targeted policy measures by the CBN, including:
✅ A substantial reduction in short-term FX obligations, such as swaps and forward contracts.
✅ Enhanced transparency and discipline in forex management, fostering greater investor trust.
✅ A more resilient reserves position, allowing Nigeria to better withstand external economic shocks.
CBN Governor Olayemi Cardoso reaffirmed the bank’s commitment to maintaining this upward trajectory, stating:
CBN Governor, Mr. Olayemi Cardoso at the National Assembly on Tuesday, September 26, 2023.
photo credit: CBN
“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.”
Gross Reserves and Future Outlook
In addition to the rise in NFER, gross external reserves climbed to $40.19 billion, up from $33.22 billion in 2023. This reflects an increasingly stronger financial position for Nigeria, despite seasonal adjustments in early 2025.
The CBN projects continued reserve growth, driven by:
📈 Improved oil production levels
🌍 A more supportive export environment
💰 Boosted non-oil foreign exchange earnings
Governor Cardoso emphasized that the CBN remains focused on market-driven reforms and economic discipline to sustain these gains.
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