The International Monetary Fund (IMF) has revealed that Nigeria’s foreign reserves plummeted to a historic low of $24 billion in 2024, down from $33 billion the previous year, according to its latest country report on Nigeria. This signals potential difficulties for Africa’s largest economy. Despite experiencing a surplus in the current account in the first half of 2023, there was a significant decrease in reserves.
Looking ahead, the IMF predicts a worsening financial account situation for 2024–25, citing factors such as no anticipated issuance of Eurobonds, substantial repayments totaling $3.5 billion to the Fund and Eurobond holders, and portfolio outflows. Consequently, even with a current account surplus, the reported reserves are expected to decline to $24 billion in 2024 before rebounding to $38 billion in 2028 as portfolio inflows resume.
However, data from the Central Bank of Nigeria (CBN) indicates that as of February 8, 2024, Nigeria’s foreign reserves were reported at $33.12 billion.