Naira gains as net FX reserves hit 3yr high

Nigeria’s naira climbed the most against the dollar in two weeks after the central bank said net foreign-exchange reserves climbed to the highest in more than three years.

The naira closed at a one-week high of N1,531.25 per dollar on Monday, according to CBN data, a 0.4 percent or N5.57 gain from N1,536.82/$1 last Friday.

The CBN said on Tuesday that net reserves jumped to $23.11 billion at the end of December 2024, a significant leap from $3.99 billion recorded at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

“NFER stood at $23.11bn, the highest level in over three years, a marked increase from $3.99 billion at year-end 2023, $8.19bn in 2022, and $14.59bn in 2021,” the Central Bank of Nigeria (CBN) said in a statement on Tuesday.

Analysts attributed the increase to measures implemented by the central bank to shore up its buffers, which they believe are finally yielding results.

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Net foreign-currency reserves rose almost sixfold to $23 billion by December from a year earlier after authorities curbed liabilities including swaps and forward obligations to rebuild market confidence, the Central Bank of Nigeria said in an emailed statement.

This is the first time that the CBN has published the figures since 2023, when Nigeria’s external-reserves position came into question after the central bank in August of that year disclosed large deals with JPMorgan Chase & Co. and Goldman Sachs Group.

Bandele Amoo, member of the Monetary Policy Committee (MPC) said, the six-fold jump in external reserves was mainly due to improved crude oil production and stability in the FX market following several reforms by the CBN.

Other factors include reduction in import demand pressures arising from the full deregulation of the downstream oil sector, reduced importation of petroleum products, increased inflows and other newly introduced measures by the CBN.

The naira closed steady at between N1,550 and N1,555 per dollar on Monday in the parallel market, popularly called black market.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.