CBN’s net external Reserves hits 3-year high of $23bn

In what stands as a defining moment for Nigeria’s external liquidity, the Central Bank of Nigeria (CBN) has announced a remarkable rebound in its Net Foreign Exchange Reserve (NFER).

The announcement was made on the Apex bank’s official X handle formerly Twitter

As of December 2024, the NFER surged to $23.11 billion, the highest level in over three years.

This represents a spectacular climb from just $3.99 billion at the close of 2023, a sharp recovery from $8.19 billion in 2022, and a stark contrast to the $14.59 billion recorded in 2021.

The numbers paint a clear picture-Nigeria’s external buffers are regaining strength, reducing short-term obligations, and restoring credibility in the FX market.

Beyond net reserves, gross external reserves also swelled rising to $40.19 billion, up from $33.22 billion in 2023.

The CBN attributes this resurgence to strategic policy measures, chief among them, a deliberate reduction in short-term forex liabilities like swaps and forward contracts.

A key driver, Improved foreign exchange inflows from non-oil sources, with reforms designed to rebuild confidence, the central bank is reinforcing a more transparent and resilient reserve framework.

CBN Governor Olayemi Cardoso says this progress is no coincidence but a product of deliberate policy choices aimed at stabilizing the economy.

In his words: “This improvement in our net reserves is not accidental; it is the outcome of transparency, discipline, and market-driven reforms.”

As 2025 unfolds, the positive momentum continues, though seasonal adjustments in the first quarter, including foreign debt interest payments have shaped short-term fluctuations.

Still, the underlying fundamentals remain strong, with the CBN expecting reserves to climb further in the second quarter.

Looking ahead, higher oil production levels and a more diversified FX earnings base are expected to sustain the trend.

The CBN reaffirms its commitment to prudent reserve management, stable exchange rate policies and investor-friendly reforms, a roadmap aimed at strengthening Nigeria’s financial backbone and ensuring long-term economic resilience.

For Nigeria, this is more than a numbers game, it’s a signpost to a more stable, investor-attractive, and economically secure future.

Editor: Anoyoyo Ogiagboviogie