At $23.11bn, CBN Reports Highest Net FX Reserves in 3 Years as Naira Trades at New Rates
- The Central Bank of Nigeria (CBN) has disclosed that Nigeria’s net foreign reserves increased to $23.11 billion in 2024
- The figure was an improvement from the previous figures of $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021
- The development came amid the naira’s relative stability in the FX markets, where it traded within the N1,500 ceiling
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) reported on Tuesday, April 1, 2025, that it achieved an improvement in its net FX reserve (NFER) at $23.11 billion in 2024.
According to a statement from the apex bank, the NFER amount was the highest level of FX accruals in three years, relative to $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.
Source: Getty Images
CBN governor explains why the reserves grew
The earnings show an improvement in Nigeria’s external liquidity, reduced short-term obligations, and increased investor confidence.
Nigeria’s gross external reserves also rose to $40.19 billion in the review period, relative to $33.22 billion in 2023.
The CBN governor, Olayemi Cardoso, declared that the improved net FX reserves were due to deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying a solid foundation for long-term stability.
According to Cardoso, the bank remains focused on sustaining the progress via transparency, discipline and market-centric reforms.
NFER is regarded as a more authentic indicator of foreign exchange defence available to meet immediate external obligations.
CBN’s policies contribute to external reserves' growth
The increase shows a combination of measures by the CBN to reduce short-term FX liabilities such as swaps and forward obligations.
The boost was also due to policy reforms by the CBN to rebuild confidence in the FX market, increase forex buffers and improve FX inflows.
The growth came amid CBN’s continued plans to reduce short-term liabilities and improve the overall quality of the reserve position.
ThisDay reports that the first quarter showed some seasonal and transitional adjustments, including significant interest payments on external debts.
CBN added that reserves are expected to improve over the second quarter of 2025.
It stated that it expects a steady rise in reserves, driven by improved oil production and more export growth boosted by oil earnings and diversified external inflows.
The naira stabilises at N1,500 per dollar
The development comes as the Nigerian currency, the naira, remained relatively stable in the FX markets, trading within the N1,500 per dollar threshold.
Analysts say the naira may have found its right value at that rate since it was devalued by President Bola Tinubu’s government in 2023.
On Friday, March 28, 2025, the naira appreciated, trading at N1,538 per dollar, from N1,540 the previous day.
Currency dealers quoted the dollar at a high of N1,542 per dollar and a low of N1,520.
The naira remained flat at N1,560 per dollar in the parallel segment of the forex market.
Source: Twitter
The local currency faced its most significant depreciation on March 27, 2025, when it plummeted to N1,542 per dollar.
CBN releases new exchange rates
Legit.ng earlier reported that the Nigerian currency, the naira, crashed again in the official Nigerian Foreign Exchange Market (NFEM) for the second consecutive day on Thursday, March 27, 2025.
The local currency shed N1 from its value, trading at N1,537.66 per dollar from N1,536 it traded the previous day.
The naira experienced a slight volatility in the FX market after demand for the US dollar resurfaced amid reforms by the Central Bank of Nigeria (CBN).
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Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 5 years of experience in copyediting.
