Nigeria’s net reserve reaches $23b, highest in over three years — CBN

This increase signals improved external liquidity, reduced short-term liabilities, and renewed investor confidence.

According to the Central Bank of Nigeria (CBN), this represents a significant rise from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

The NFER, which adjusts gross reserves by factoring in near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of Nigeria’s available foreign exchange buffers. Meanwhile, gross external reserves also rose to $40.19 billion, up from $33.22 billion at the end of 2023.

The increase in reserves is attributed to strategic CBN measures, including a deliberate reduction in short-term foreign exchange liabilities—particularly swaps and forward obligations.

Additionally, policy actions aimed at restoring confidence in the FX market and strengthening reserve buffers, coupled with rising foreign exchange inflows from non-oil sources, contributed to the improvement.

As a result, Nigeria now has a stronger and more transparent reserves position, better equipped to withstand external shocks. The CBN emphasized that this expansion occurred alongside a continued reduction in short-term liabilities, enhancing the overall quality of the reserve portfolio.

“This improvement in our net reserves is not coincidental; it is the result of deliberate policy measures aimed at rebuilding confidence, reducing vulnerabilities, and laying the groundwork for long-term stability,” said CBN Governor Olayemi Cardoso. “We remain committed to sustaining this progress through transparency, discipline, and market-driven reforms.”

Reserves have continued to be strengthen in 2025. Although the first quarter reflected some seasonal and transitional adjustments—such as significant interest payments on foreign-denominated debt—the underlying fundamentals remain strong. The CBN expects further improvements in the second quarter.

Looking ahead, the central bank anticipates a steady rise in reserves, driven by higher oil production and an improved export environment that will boost non-oil FX earnings and diversify external inflows.

“The CBN remains dedicated to prudent reserve management, transparent reporting, and macroeconomic policies that foster exchange rate stability, attract investment, and enhance long-term economic resilience,” the statement concluded.