The Central Bank of Nigeria (CBN) reported a staggering loss of N13.9 trillion (around $9 billion) in its efforts to defend the naira, settle overdue contracts, and reduce foreign exchange liabilities in 2024. This figure more than doubled the N6.3 trillion loss recorded in 2023.
The apex bank said the losses stemmed from clearing legacy FX deals to reduce Nigeria’s foreign currency exposure and rebuild reserves. The financial disclosure aligns with the CBN’s move in 2023 to improve transparency and attract investor confidence amid growing dollar shortages.
Reports indicate the CBN’s latest financials exposed major foreign currency contracts with JP Morgan and Goldman Sachs, raising concerns about Nigeria’s real external reserves and the bank’s ability to back the naira. The deals were reportedly struck to support the federal government’s dollar needs.
According to Bloomberg, the CBN revealed in April that it had completed several FX deals, including swaps and forwards, bringing Nigeria’s net foreign currency position to $23 billion by December 2024. By April 30, 2025, gross external reserves had risen to $37.9 billion, the highest in three weeks.
Since President Bola Tinubu launched his FX reforms, the naira has lost about 71% of its value against the US dollar. Liquidity management costs soared to N4.5 trillion in 2024, up from N1.5 trillion in 2023, due to the CBN’s use of high-yield, short-term bonds to manage inflation and mop up excess naira.
Oil Price Crash Threatens 2025 Budget
Falling oil prices are adding more pressure. Brent crude dropped to $61.86 per barrel while WTI slipped to $58.21, well below Nigeria’s 2025 budget benchmark of $75. Saudi Arabia’s move to increase oil output has triggered a market slide, which could undermine Nigeria’s fiscal plans.
The country’s daily oil production also fell from 1.495 million barrels in January to 1.465 million in February, with further drops in March. With oil accounting for the bulk of Nigeria’s revenue, analysts warn that the 2025 budget is at serious risk.
Naira Falls Again in Official Market
Meanwhile, the naira depreciated slightly in the official market, closing at N1,606 per dollar on Friday, April 4, down 0.24% from the previous day’s N1,602, according to CBN data.
