The Central Bank of Nigeria reported a 13.9 trillion naira ($9 billion) loss in 2024, driven by the settlement of overdue derivatives contracts, as part of a strategic push to reduce foreign currency liabilities and restore investor confidence in the naira, according to Bloomberg.

The loss, a sharp rise from 6.3 trillion naira in 2023, reflects the CBN’s efforts to clear longstanding “legacy transactions,” reduce forex exposure, and bolster net foreign reserves.

The CBN’s transparency drive, initiated in 2023 with the publication of its financial statements, aims to signal operational clarity and support broader reforms.

These include removing capital controls, floating the naira, and attracting dollar inflows to address Nigeria’s acute forex shortage.

However, the reported loss has sparked concerns about the true size of Nigeria’s external reserves and the CBN’s capacity to stabilize the naira, which has depreciated by approximately 71% against the dollar since June 2023, following President Bola Tinubu’s forex reforms.

Further scrutiny arose from the CBN’s financial arrangements with JPMorgan Chase & Co. and Goldman Sachs, involving foreign-currency-backed deals to support government finances.

The CBN confirmed in April that it had settled these obligations, including currency swaps and forward contracts, boosting net foreign-currency reserves to $23 billion by December 2024.

Gross external reserves also climbed to $37.9 billion as of April 30, 2025, marking a three-week high, per Bloomberg data.

Meanwhile, liquidity management costs surged to 4.5 trillion naira in 2024, up from 1.5 trillion naira in 2023, driven by the CBN’s issuance of high-yield, short-term securities to curb excess liquidity, tame inflation, and stabilize the naira.