Nigeria’s foreign reserves plunge to $24bn in 2024

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.

This alarming decline, as indicated in the IMF’s latest country report for Nigeria, suggests possible hurdles for the continent’s largest economy.

Despite experiencing a surplus in the current account during the first half of 2023, there was a significant reduction in reserves, according to the report.

“Through 2024–25, the financial account will likely deteriorate, with no projected issuance of Eurobonds, large Fund and Eurobond repayments of $3.5 billion, and portfolio outflows.

“Hence, despite a current account surplus, officially reported reserves are projected to decline to $24 billion in 2024 before increasing again to $38 billion in 2028 as portfolio inflows resume,” the report stated.

The Nigeria Central Bank is yet to issue a statement to confirm or reject this as the apex bank’s data showed Nigeria’s foreign reserves stood at $33.12 billion as of February 8, 2024.