CBN Reports 479% Surge in Net Foreign Exchange Reserves

The Central Bank of Nigeria (CBN) has announced a significant increase in the nation’s Net Foreign Exchange Reserves (NFER), which surged by 479% to $23.11 billion in 2024 from $3.99 billion in 2023.

This marks the highest level in over three years, reflecting improved external liquidity, reduced short-term obligations, and renewed investor confidence.

According to the CBN, the gross external reserves also rose to $40.19 billion from $33.22 billion at the end of 2023. The increase is attributed to strategic measures aimed at reducing foreign exchange liabilities, particularly swaps and forward contracts, while rebuilding confidence in the FX market and enhancing reserve buffers.

CBN Governor Olayemi Cardoso stated that the improvement was the result of deliberate policy choices aimed at achieving long-term stability and reducing economic vulnerabilities. He emphasized the bank’s commitment to sustaining progress through transparency and market-driven reforms.

Looking ahead, the CBN anticipates further growth in reserves, driven by improved oil production and non-oil FX earnings, as well as policies designed to maintain a stable exchange rate and strengthen the Nigerian economy.