By Milcah Tanimu
Nigeria’s external reserves have surged to a 22-month high, reaching $37.31 billion as of September 18, 2024. This marks the highest point since November 2022 and reflects a notable recovery in the country’s foreign currency position. Despite this boost, the naira remains one of the world’s worst-performing currencies, as reported by Bloomberg.
According to the Central Bank of Nigeria (CBN), the increase in reserves can be attributed to multiple factors, including foreign investment in domestic dollar bonds, remittances from Nigerians abroad, multilateral loans, and foreign portfolio investments. On a year-to-date basis, the reserves have risen by 12.99%, adding $4.29 billion from the $33.02 billion recorded at the start of 2024.
Year-on-year, the external reserves grew by 12%, gaining $4.03 billion from the $33.28 billion reported in September 2023. The federal government raised over $900 million from investors, with $500 million coming from the first series of a $2 billion domestic dollar bond aimed at economic stabilization.
Additional inflows contributing to the reserves include $553 million in remittances, a $3.3 billion AfreximBank oil facility, and $2.25 billion from the World Bank Group. Foreign exchange inflows also increased by 57% in one year, thanks to CBN’s consistent policies.
In February 2024 alone, the economy recorded $8.86 billion in foreign exchange inflows, a significant rise from $5.66 billion in February 2023, underscoring Nigeria’s growing foreign investment and economic stabilization efforts.
