CBN reports strongest net reserve position as external reserves hit $40.19bn

*The Central Bank of Nigeria discloses the banking sector regulator has recorded a substantial improvement in its Net Foreign Exchange Reserve position, standing at $23.11 billion as of the end of 2024, which is regarded as ‘the highest level in over three years’ in the country’s economy

Gbenga Kayode | ConsumerConnect

Reflecting a substantial improvement in the West African country’s external liquidity, reduced short-term obligations, and renewed investor confidence, the Central Bank of Nigeria (CBN) has reported a substantial improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024.

ConsumerConnect reports the CBN, which revealed this development Tuesday, April 1, 2025, said NFER which stood at $23.11 billion, is regarded as “the highest level in over three years”, marking an increase from $3.99 billion at year-end 2023, $8.19 billion 2022, and $14.59 billion 2021.

The Bankers’ Bank, also said NFER, which adjusts gross reserves to account for near-term liabilities, such as FX swaps and forward contracts.

It is widely regarded as a more accurate indicator of the Foreign Exchange (Forex) buffers available to meet immediate external obligations, the Bank noted.

The CBN said the gross external reserves also increased to $40.19 billion, compared to $33.22 billion at the close of 2023.

NFER a ‘stronger, more transparent reserves position’

The Bank also stated: “The increase in reserves reflects a combination of strategic measures undertaken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities – notably swaps and forward obligations.

“The strengthening was also spurred by policy actions to rebuild confidence in the FX market and increase reserve buffers, along with recent improved foreign exchange inflows – particularly from non-oil sources.”

According to CBN, the result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks.

The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.

Cardoso: We’ll sustain progress through transparency, discipline, and market-driven reforms

Speaking on the development, Dr. Olayemi Cardoso, Governor of CBN, was quoted to have commented: “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.

“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”

The CBN also explained that as reserves continue to strengthen in 2025, the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt.

Underlying fundamentals have also remained intact, and reserves are expected to continue improving over the second quarter of this year, it said,

The CBN, therefore, said it “anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment expected to boost non-oil FX earnings and diversify external inflows.”

The Bank as well assured Nigerians that it remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.

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