The Central Bank of Nigeria (CBN) has reported that Nigeria's net foreign exchange reserves (NFER) reached $23.11 billion in 2024, marking the highest level in three years. This represents a substantial increase from $3.99 billion recorded at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

Net foreign exchange reserves, which adjust gross reserves to account for near-term liabilities such as FX swaps and forward contracts, are considered a more accurate indicator of the country's ability to meet immediate external obligations.

Additionally, Nigeria's gross external reserves rose to $40.19 billion at the end of 2024, up from $33.22 billion at the end of 2023.

CBN Governor Olayemi Cardoso attributed this growth to deliberate policy choices aimed at stabilizing the economy. "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," Cardoso stated.

The CBN identified several key factors driving this improvement:

- Strategic reduction in short-term FX liabilities, particularly swaps and forward obligations

- Policy reforms that restored confidence in the FX market

- Increased foreign exchange inflows, especially from non-oil sources

While the bank noted that reserves have continued to strengthen in 2025, the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt.