CBN Records Highest Net Reserve Position in Over Three Years

Read Time:1 Minute, 45 Second

The Central Bank of Nigeria (CBN) has reported an improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024, signaling stronger external liquidity, reduced short-term obligations, and renewed investor confidence.

According to the CBN, NFER reached $23.11 billion, the highest level in more than three years, rising sharply from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

NFER, which adjusts gross reserves by accounting for short-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of the country’s foreign exchange buffer available for immediate external obligations.

Gross external reserves also saw an increase, reaching $40.19 billion compared to $33.22 billion at the close of 2023.

The rise in reserves reflects a combination of strategic measures by the CBN, including a deliberate reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations.

Read: Central Bank of Nigeria Revises ATM Transaction Fees

Additionally, policy initiatives aimed at rebuilding confidence in the FX market, strengthening reserve buffers, and boosting foreign exchange inflows, especially from non-oil sources, have contributed to this growth.

As a result, Nigeria now holds a more robust and transparent reserves position, enhancing its resilience against external shocks. This progress comes even as the CBN continues reducing short-term liabilities, improving the overall quality of the reserve portfolio.

“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. We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.” said CBN Governor Olayemi Cardoso.

Reserves have continued to strengthen in 2025. While first-quarter figures reflected seasonal and transitional adjustments, such as substantial interest payments on foreign-denominated debt, the underlying fundamentals remain solid, and reserves are expected to keep improving throughout the second quarter.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.