The naira appreciated by 0.6% to 1,530 per dollar as of 11:15 a.m. in Lagos on Wednesday, according to BMAT spot trading data tracked by Bloomberg. This marks the currency’s biggest gain since March 18 and its strongest exchange rate in nearly a month.
According to the CBN, net foreign-currency reserves surged almost sixfold to $23 billion by December 2024, compared to the previous year. The increase follows measures to curb liabilities, including swaps and forward obligations, aimed at restoring confidence in the market. This disclosure marks the first time the central bank has published such figures since 2023 when questions arose about Nigeria’s external reserves.
In August 2023, the central bank revealed significant foreign-currency transactions with JPMorgan Chase & Co. and Goldman Sachs Group Inc., raising concerns about the true size of the nation’s reserves and the CBN’s ability to stabilize the naira. Recent data from Bloomberg shows that Nigeria’s gross reserves have continued to rise for three consecutive days, reaching $38.33 billion as of March 27.
By strengthening its reserve position, the CBN aims to “rebuild confidence in the FX market and increase reserve buffers,” the bank stated. Looking ahead, the CBN anticipates a continued increase in reserves, supported by improved oil production and a more favorable export environment.
Despite this positive development, the naira remains under pressure. Since June 2023, when President Bola Tinubu introduced economic reforms to attract foreign investment, the currency has lost about 70% of its value against the dollar. However, the latest rise in reserves could signal a turning point in efforts to stabilize Nigeria’s exchange rate and restore investor confidence.