By Anthony Otaru, Abuja
Amid concerns over robust net reserves, the Central Bank of Nigeria (CBN) yesterday disclosed that the nation’s net foreign exchange reserves stood at $23.11bn, the highest level in three years.
The apex bank said this reflects a marked increase from $3.99bn at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021, respectively.
Recall that NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations.
In a statement made available to journalists yesterday in Abuja, CBN further explained that the gross external reserves also increased to $40.19bn, compared to $33.22bn at the close of 2023.
Accordingly, it said that the increase in reserves reflects a combination of strategic measures undertaken by the CBN, 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. The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position,” the statement noted.
Commenting on the development, the CBN Governor, Olayemi Cardoso, said, “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.
“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.”
The CBN boss also explained that as we advance, the apex bank anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supportive export growth environment expected to boost non-oil FX earnings and diversify external inflows.
He assured that the CBN remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.
