Finally, CBN reveals Nigeria’s “Net External Reserves” figure 

According to the CBN, the NFER rose significantly to $23.11 billion at the end of 2024, marking the highest level in over three years. 

In a press statement on Tuesday, the bank noted that this is a significant jump from the $3.99 billion recorded at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

The NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of the country’s foreign exchange buffers available to meet immediate external obligations.

In addition to the NFER boost, Nigeria’s gross external reserves increased to $40.19 billion as of December 2024, up from $33.22 billion at the close of the previous year. This improvement reflects the CBN’s deliberate measures to reduce short-term foreign exchange liabilities, particularly FX swaps and forward obligations.

According to the statement, CBN Governor Olayemi Cardoso attributed the increase to strategic policy decisions aimed at enhancing investor confidence, reducing vulnerabilities, and building a more robust reserve position.

He stated, “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.”

The CBN highlighted several factors that contributed to the improved NFER position:

The result is a more transparent and resilient reserve profile that better equips Nigeria to withstand external shocks, even as the CBN continues to reduce short-term obligations.