Nigeria’s net foreign exchange reserves (NFER) have risen to $23.11 billion at the end of 2024, according to the Central Bank of Nigeria (CBN). This figure is $15.6 billion lower than the gross reserves, which currently stand at $38.7 billion, a slight drop from the $40.2 billion recorded at the close of last year. The new figures have put to rest speculation that Nigeria might have been operating with negative net reserves amid the prolonged foreign exchange crisis.
The CBN noted that the latest net reserve figure is the highest in over three years, reflecting improved external liquidity, reduced short-term liabilities, and renewed investor confidence. The central bank disclosed that this increase was achieved through deliberate policies aimed at stabilizing the economy and ensuring transparency in the management of the country’s foreign exchange position.
Compared to previous years, the improvement in net reserves is significant. At the end of 2023, Nigeria’s net foreign reserves were at a much lower $3.99 billion. In 2022, the figure stood at $8.19 billion, while in 2021, it was recorded at $14.59 billion. The CBN explained that net foreign exchange reserves provide a clearer picture of the country’s actual FX buffer, as they account for obligations such as FX swaps and forward contracts, which are deducted from gross reserves.
For years, concerns had grown over the true state of Nigeria’s foreign reserves. The central bank had not been open about the figures, leading to uncertainty in financial circles. However, during last year’s World Bank/International Monetary Fund (IMF) annual meetings in Washington DC, the CBN Governor, Yemi Cardoso, pledged to begin disclosing net reserves data to enhance transparency. The latest publication of Nigeria’s NFER is seen as part of that commitment.
The CBN also reported that gross external reserves grew to $40.19 billion, compared to $33.22 billion at the end of 2023. The central bank attributed this increase to a combination of strategic measures, including a sharp reduction in short-term foreign exchange liabilities, particularly forward contracts and FX swaps. It further explained that policy efforts to boost investor confidence and attract foreign exchange inflows—especially from non-oil sources—have contributed to the strengthening of reserves.
Governor Yemi Cardoso described the rise in net reserves as a direct result of policy decisions aimed at restoring confidence, reducing economic vulnerabilities, and ensuring long-term stability. He stressed that the bank’s focus remains on sustaining these improvements through disciplined monetary policies, transparency, and market-driven reforms.
The CBN assured Nigerians that reserves will continue to strengthen in 2025. Although first-quarter figures reflected some seasonal and transitional adjustments, including large interest payments on foreign-denominated debt, the overall fundamentals remain stable. The apex bank expects reserves to improve further in the second quarter as the country experiences increased oil production and a more favorable export environment, which should boost non-oil foreign exchange earnings.
Looking ahead, the CBN reiterated its commitment to prudent reserve management, clear financial reporting, and macroeconomic policies that promote exchange rate stability, attract investments, and build long-term resilience for the Nigerian economy.
