CBN Governor, Olayemi Micheal Cardoso
The Central Bank of Nigeria (CBN) has announced that the nation’s net foreign exchange reserves reached $23.11 billion by the end of 2024, marking the highest level in over three years. This significant improvement reflects enhanced external liquidity, reduced short-term obligations, and renewed investor confidence in Nigeria’s economy, Reuters reported.
The net foreign exchange reserves (NFER), which account for near-term liabilities such as currency swaps and forward contracts, stood at $3.99 billion at the end of 2023. This represents a substantial recovery from previous years, with NFER at $8.19 billion in 2022 and $14.59 billion in 2021. The CBN attributed this positive trajectory to deliberate policy actions aimed at bolstering market confidence and ensuring long-term stability.
Gross external reserves also experienced growth, rising to $40.19 billion at the end of 2024 from $33.22 billion the previous year. This increase was driven by receipts from crude oil-related taxes and third-party payments in the third quarter of 2024. CBN Governor Olayemi Cardoso highlighted that the current external reserves position can finance over nine months of imports of goods and services, significantly surpassing the international benchmark of three months.
Governor Cardoso emphasized that this improvement is the result of intentional policy decisions aimed at rebuilding confidence, reducing vulnerabilities … economic stability. He stated, “We remain focused on sustaining this progress … .”
While reserves declined in the first … steady uptick in reserves throughout the second quarter. This optimism is supported by expectations of increased oil output and growth in non-oil exports.
The CBN reaffirmed its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and enhance Nigeria’s long-term economic resilience.
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