Nigeria’s Net Foreign Exchange Reserves (NFER) have soared to $23.11 billion as of December 2024, marking the highest level in over three years, according to data released by the Central Bank of Nigeria (CBN) on Tuesday. The sharp rebound is attributed to a series of bold reforms implemented under the leadership of CBN Governor Olayemi Cardoso.
The new figures represent a dramatic leap from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021. The increase reflects the central bank’s sustained efforts to strengthen Nigeria’s external buffers and stabilize the foreign exchange market.
“NFER stood at $23.11 billion, the highest level in over three years,” the CBN stated, highlighting that the growth in reserves is a direct result of policy measures aimed at boosting investor confidence and attracting capital inflows.
Net FX reserves—calculated by subtracting a country’s foreign exchange liabilities from its gross reserves—provide a more accurate gauge of Nigeria’s ability to meet external obligations, defend the naira, and ensure macroeconomic stability.
Governor Cardoso’s administration has introduced critical reforms, including the liberalization of the FX market and the floating of the naira, which have begun to yield tangible results in restoring trust and liquidity in the financial system.
Analysts view the surge in reserves as a positive signal for foreign investors and a strong indicator of Nigeria’s improving economic fundamentals.
These efforts have seen the country’s gross external reserves increase to $40.19 billion as of December 2024, compared to $33.22 billion at the end of 2023.
This upward move in reserves reflects deliberate measures taken by the CBN to reduce short-term foreign exchange liabilities, particularly FX swaps and forward obligations.