The Central Bank of Nigeria (CBN) has announced a significant improvement in Nigeria’s Net Foreign Exchange Reserve (NFER), which has surged to $23.11 billion, the highest level in over three years.
This marks a sharp increase from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
The CBN attributed this growth to strategic policy measures, including a deliberate reduction in short-term foreign exchange liabilities, such as FX swaps and forward contracts.
The improvement was also driven by renewed investor confidence, efforts to stabilise the foreign exchange market, and increased inflows from non-oil sources.
Gross external reserves also rose to $40.19 billion, up from $33.22 billion at the close of 2023, reflecting strengthened external liquidity and enhanced reserve buffers.
“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,” said CBN Governor Olayemi Cardoso.
He further assured that the CBN remains committed to maintaining progress through “transparency, discipline, and market-driven reforms.”
While seasonal factors and foreign debt interest payments influenced reserve fluctuations in early 2025, the CBN noted that the fundamentals remain strong.
The bank expects further reserve growth in the second quarter, driven by increased oil production and a favourable export environment that could bolster non-oil foreign exchange earnings.
The apex bank reaffirmed its commitment to prudent reserve management, transparent reporting, and macroeconomic policies aimed at stabilising the exchange rate, attracting investment, and enhancing Nigeria’s economic resilience.
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