The Central Bank of Nigeria (CBN) has reported that the country’s Net Foreign Exchange Reserves (NFER) have surged to $23.11 billion, marking their highest level in over three years.
This milestone reflects significant improvements in Nigeria’s external liquidity and reduced short-term obligations.
Key Details:
- Historical Comparison: The NFER rose sharply from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
- Gross External Reserves: Gross reserves also increased to $40.19 billion, compared to $33.22 billion at the close of 2023.
- Policy Measures: The CBN attributed the improvement to strategic measures, including a deliberate reduction in short-term foreign exchange liabilities, such as swaps and forward obligations. Enhanced foreign exchange inflows, particularly from non-oil sources, also contributed.
- Governor’s Statement: CBN Governor Olayemi Cardoso emphasized that the growth in reserves is the result of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.
This development signals a stronger and more transparent reserves position, equipping Nigeria to better withstand external shocks.
