Nigerian banks have regained their footing in the foreign exchange market, with net foreign assets (NFA) rising to the highest level in over a decade, thanks to sweeping currency reforms that have increased market liquidity and eased funding pressures.
According to a joint report by Fitch Ratings and Renaissance Capital Africa, the banking sector’s NFA rebounded to $7.7 billion by the end of 2024, reversing years of negative balances that once forced lenders to lean heavily on the Central Bank of Nigeria (CBN) and correspondent banks to settle trade obligations.
The liberalisation of the naira and improved FX market turnover have allowed the sector to “return to a net foreign asset position” —something not seen in more than ten years, Fitch said in its latest outlook.
