Nigeria’s foreign reserves drop to record low of $24bn in 2024 – IMF

The International Monetary Fund, IMF, says Nigeria’s foreign reserves dropped to a record low of $24 billion in 2024 from $33 billion last year.

The IMF’s latest country report for Nigeria disclosed this, signalling potential challenges for Africa’s largest economy.

It noted that the first half of 2023 witnessed a surplus in the current account, yet there was a notable decline in reserves.

“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.

However, Central Bank of Nigeria, CBN, data showed Nigeria’s foreign reserves stood at $33.12 billion as of February 8, 2024.