CBN Declares Net Foreign Exchange Reserves of $23.11bn

In a notice yesterday, the apex bank said this was its highest NFER in more than three years, as it was higher than the 2023, 2022, and 2021 figures by $3.99 billion, $8.19 billion, and $14.59 billion, respectively.

It noted that the latest NFER only shows a substantial improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.

The banking sector watchdog disclosed that the expansion occurred even as it continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.

The CBN stated that the rise in reserves reflects a combination of strategic measures it has undertaken, 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.

The result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks.

“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 Governor of the central bank, Mr Olayemi Cardoso, commented.

NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is widely regarded as a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations.

Reserves have continued to strengthen in 2025. While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact, and reserves are expected to continue improving over the second quarter of this year.

Going forward, the CBN 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.