<\/p>\n
…Signals Renewed Investor Confidence, Stronger External Liquidity<\/em><\/p>\n By Anthony Emeka Nwosu<\/strong><\/p>\n The Central Bank of Nigeria (CBN) has announced a significant surge in the country\u2019s Net Foreign Exchange Reserve (NFER), marking its highest level in over three years. This development underscores renewed investor confidence, enhanced external liquidity, and a substantial reduction in Nigeria\u2019s short-term foreign exchange obligations.<\/p>\n According to the apex bank, Nigeria\u2019s NFER stood at $23.11 billion as of the end of 2024 \u2014 a remarkable leap from $3.99 billion recorded at the close of 2023. In contrast, NFER figures were $8.19 billion in 2022 and $14.59 billion in 2021. The NFER metric, which adjusts gross reserves by accounting for near-term liabilities such as FX swaps and forward contracts, is considered a more accurate measure of a country\u2019s foreign exchange buffer available to meet immediate external demands.<\/p>\n In parallel, gross external reserves also improved, rising to $40.19 billion from $33.22 billion recorded at the end of 2023.<\/p>\n The CBN attributed the rise to strategic policy initiatives, particularly the deliberate reduction of short-term FX liabilities and a renewed push for transparency and investor confidence in Nigeria\u2019s FX market. Additionally, the country witnessed improved foreign exchange inflows from non-oil sources, which further bolstered the reserve position.<\/p>\n \u201cThis 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,\u201d said Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria.<\/p>\n He added, \u201cWe remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”<\/p>\n The CBN noted that the positive trend has extended into 2025, despite some seasonal and transitional adjustments in the first quarter, including interest payments on foreign-denominated debts. The bank, however, maintains that the underlying fundamentals remain strong.<\/p>\n Looking ahead, the CBN projects a continued upward trend in reserves, supported by expected improvements in oil production and a more favorable export environment, especially for non-oil sectors.<\/p>\n The apex bank reiterated its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that foster exchange rate stability, attract foreign investment, and strengthen Nigeria\u2019s long-term economic resilience.<\/p>\n #CBN #FX #NigeriaEconomy #ExternalReserves<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" …Signals Renewed Investor Confidence, Stronger External Liquidity By Anthony Emeka Nwosu The Central Bank of Nigeria (CBN) has announced a significant surge in the country\u2019s Net Foreign Exchange Reserve (NFER), marking its highest level in over three years. This development underscores renewed investor confidence, enhanced external liquidity, and a substantial reduction in Nigeria\u2019s short-term […]<\/p>\n","protected":false},"author":1,"featured_media":27581,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[302,16,366,317,444,324],"tags":[],"class_list":["post-27578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-business","category-economy","category-finance","category-fintech","category-investments"],"_links":{"self":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts\/27578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/comments?post=27578"}],"version-history":[{"count":0,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts\/27578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/media\/27581"}],"wp:attachment":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/media?parent=27578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/categories?post=27578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/tags?post=27578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}