Nigeria’s internet overseas trade reserves rose considerably to $23.11bn on the finish of 2024, marking the very best stage in over three years, in keeping with the Central Financial institution of Nigeria.
In a press assertion on Tuesday, the apex financial institution famous that this represents a major leap from $3.99bn recorded on the finish of 2023, $8.19bn in 2022, and $14.59bn in 2021.
The assertion learn, “NFER stood at $23.11bn, the very best stage in over three years, a marked improve from $3.99bn at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021.”
The NFER, which adjusts gross reserves to account for near-term liabilities equivalent to FX swaps and ahead contracts, is considered a extra correct measure of the nation’s overseas trade buffers accessible to satisfy rapid exterior obligations.
The CBN additionally reported that Nigeria’s gross exterior reserves elevated to $40.19bn as of December 2024, in comparison with $33.22bn on the finish of 2023.
This enchancment displays deliberate measures taken by the CBN to scale back short-term overseas trade liabilities, notably FX swaps and ahead obligations.
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In response to the assertion, CBN Governor Olayemi Cardoso attributed the rise to strategic coverage choices geared toward enhancing investor confidence, lowering vulnerabilities, and constructing a extra strong reserve place.
“This enchancment in our internet reserves just isn’t unintentional; it’s the end result of deliberate coverage selections geared toward rebuilding confidence, lowering vulnerabilities, and laying the inspiration for long-term stability,” Cardoso stated.
The CBN famous that the development in NFER was pushed by a mixture of things, together with a major discount in short-term FX liabilities equivalent to swaps and forwards, which beforehand posed dangers to liquidity.
Additionally, elevated overseas trade inflows from non-oil sources contributed to strengthening the reserve place.
The financial institution additionally credited coverage reforms geared toward restoring confidence within the FX market, which helped appeal to extra sustainable inflows.
The CBN expressed optimism about sustaining this upward development in 2025.
Whereas the primary quarter confirmed some seasonal changes, together with important curiosity funds on foreign-denominated debt, the underlying fundamentals remained sturdy.
Reserves are anticipated to proceed rising, pushed by improved oil manufacturing ranges and a beneficial export surroundings, notably from non-oil sectors.
The CBN stated these components would improve Nigeria’s exterior liquidity and help a secure trade charge.
