New data from the International Monetary Fund (IMF) reveals that Nigeria’s foreign reserves have plummeted to a historic low of $24 billion in 2024, down from $33 billion the previous year. The latest IMF report on Nigeria highlights potential economic challenges for the country, sparking concerns about Africa’s largest economy.
The report points out that despite a current account surplus in the first half of 2023, there has been a significant decline in reserves. Looking ahead, the IMF anticipates a deterioration in Nigeria’s financial account, citing factors such as the absence of projected Eurobond issuance, substantial repayments, and portfolio outflows.
The IMF report projects a further decline in officially reported reserves to $24 billion in 2024, with a subsequent increase to $38 billion in 2028 as portfolio inflows are expected to resume. However, data from the Central Bank of Nigeria (CBN) indicates that the country’s foreign reserves were at $33.12 billion as of February 8, 2024.
