This improvement highlights a stronger external financial position for the country, with reserves rising sharply from $3.99 billion at the close of 2023.

The Central Bank of Nigeria (CBN) attributes the increase to a significant reduction in short-term foreign exchange liabilities, including currency swaps and forward contracts. It also credits policies designed to boost market confidence and higher non-oil forex inflows.

In comparison, Nigeria’s NFER stood at $8.19 billion in 2022 and $14.59 billion in 2021. Additionally, the country’s gross external reserves rose to $40.19 billion in 2024, up from $33.22 billion the previous year.

Financial analysts suggest this trend reflects a more stable economic outlook. However, they caution that maintaining reserve growth will depend on broader global economic conditions and sustainable fiscal policies.

--ChannelAfrica--