Nigeria’s net FX reserves rises to $23.11 billion in 2024

• Nigeria’s net foreign exchange reserves rose to $23.11 billion in 2024
• The 2024 figure is the highest recorded level in over three years
• Gross external reserves increased to $40.19 billion in 2024

Nigeria’s Net Foreign Exchange Reserves (NFER) increased to $23.11 billion at the end of 2024, its highest level in over three years.

The Central Bank of Nigeria disclosed this in a press statement on Tuesday, April 1.

According to the CBN, the net FX reserves recorded at the end of 2024 marked a significant increase from the $3.99 billion recorded at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

“NFER stood at $23.11 billion, the highest level in over three years, a marked increase from $3.99 billion at year-end 2023, $8.19 billion in 2022, and $14.59 billion in 2021,” the statement read.

The NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is a more accurate measure of the country’s foreign exchange buffers available to meet immediate external obligations.

Gross external reserves increased to $40.19 billion

The CBN also reported that Nigeria’s gross external reserves increased to $40.19 billion as of December 2024, a $6.97 billion increase from $33.22 billion recorded at the end of 2023.

The statement further added that the CBN governor, Olayemi Cardoso, attributed the increase to strategic policy decisions aimed at enhancing investor confidence, reducing vulnerabilities, and laying the foundation for long-term stability.

“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.

Factors that contributed to net FX reserves growth in 2024

The CBN noted that the improvement in NFER is attributable to a combination of factors, including a significant reduction in short-term FX liabilities such as swaps and forwards, which previously posed risks to liquidity.

It added that increased foreign exchange inflows from non-oil sources is another factor that contributed to strengthening the reserve position.

The CBN also cited policy reforms aimed at restoring confidence in the FX market, which helped attract more sustainable inflows, and expressed optimism about sustaining the upward trend in 2025.

While the first quarter showed some seasonal adjustments, including significant interest payments on foreign-denominated debt, the underlying fundamentals remained strong.

Nigeria’s FX reserves are expected to continue growing, driven by improved oil production levels and a favourable export environment, particularly from non-oil sectors, factors the CBN said would enhance Nigeria’s external liquidity and support a stable exchange rate.

Cardoso reaffirmed that the CBN is committed to prudent reserve management, transparent reporting, and macroeconomic policies aimed at maintaining stability, attracting investment, and building long-term economic resilience.

Nigeria’s FX reserves falls to $38.42 billion in February

Meanwhile, TheRadar earlier reported that Nigeria’s foreign exchange (FX) reserves fell by $1.31 billion from $39.72 billion on January 31, 2025, to $38.42 billion on February 28, 2025.

According to data from the Central Bank of Nigeria (CBN), the figure showed a 3.3 per cent decline within one month.