Nigeria’s External Reserves Surge to Eight-Month High, Hits $34.1 Billion

Recent data released by the Central Bank of Nigeria (CBN) indicates a significant upswing in Nigeria’s external reserves to $34.1 billion as of March 7, 2024.

This represents an increase of $993 million within a single month, a robust growth trajectory for the country’s foreign reserves.

Analysis of the data underscores a notable trend, with the reserves largely fluctuating between $32 to $33 billion over the past eight months.

However, the latest figures represent the highest point since June 30, 2023, when the reserves peaked at $34.1 billion, coinciding with a period of stability and growth in Nigeria’s economic landscape.

The surge in external reserves follows a surge in overseas remittances, which amounted to $1.3 billion in February, a substantial uptick from the previous month’s $300 million.

Foreign investors have also demonstrated keen interest in Nigerian assets, acquiring over $1 billion worth in the same month.

Total portfolio flows for the year stand at approximately $2.3 billion, compared to $3.9 billion in 2023.

Acting Director of Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, attributes the heightened foreign exchange inflow to increased remittance payments from Nigerians abroad and rising investor interest in naira-denominated assets.

She highlights oversubscribed government securities auctions, with foreign investors contributing over 75% of bids received in recent auctions.

CBN Governor Mr. Olayemi Cardoso has outlined a comprehensive strategy during the Monetary Policy Committee meeting, aiming to curb inflation, stabilize the exchange rate, and boost confidence in the banking system and the economy.

The surge in external reserves reflects positive investor sentiment and underscores Nigeria’s resilience amid evolving global economic dynamics.