Nigeria’s Foreign Exchange Reserves Reach Three-Year High
Nigeria’s net foreign exchange reserves (NFER) have experienced a significant surge, reaching $23.11 billion by the end of 2024. This marks the highest level in three years and demonstrates a renewed strength in the nation’s external financial position. The impressive growth from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021 has been attributed to various factors, including reduced short-term liabilities such as swaps and forward contracts, as reported by the Central Bank of Nigeria.
The Central Bank of Nigeria highlighted deliberate reforms that have been implemented to restore market confidence and reduce vulnerabilities. Additionally, an increase in non-oil foreign exchange inflows has contributed to the positive trajectory of Nigeria’s foreign reserves. The nation’s gross external reserves have also seen a notable increase, rising to $40.19 billion from $33.22 billion in the previous year.
While there was a slight dip in reserves during the first quarter of 2025 due to debt interest payments, the Central Bank of Nigeria remains optimistic about the future outlook. They anticipate a steady climb in reserves driven by higher oil production and non-oil export earnings.
Sources: Nairametrics
