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  • Business - Economy
  • Updated: February 12, 2024

Nigeria's foreign reserve to drop in 2024 — IMF

Nigeria's foreign reserve to drop in 2024 — IMF

In a concerning forecast by the International Monetary Fund (IMF), Nigeria’s foreign reserve is expected to see a significant reduction, falling to $24 billion in the year 2024.

The prediction is detailed in the IMF’s latest country report for Nigeria, signalling potential challenges ahead for Africa’s largest economy.

IMF anticipates a challenging period through 2024–25 for Nigeria’s financial account, exacerbated by an absence of new Eurobond issuances, significant repayments of existing funds and Eurobonds totalling $3.5 billion, and continued portfolio outflows.

Despite projecting a current account surplus, the officially reported reserves are expected to diminish to $24 billion in 2024, with a hopeful recovery to $38 billion by 2028 as portfolio inflows are forecasted to pick up once again.

The report reads, “Through 2024–25, the financial account is likely to 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.”

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