Nigeria recorded a balance of payments (BOP) surplus of $6.83 billion in 2024, marking a significant turnaround from the previous two years of deficits. The data, released by the Central Bank of Nigeria (CBN), indicates a recovery in the country’s external finances, bolstered by macroeconomic reforms, stronger trade flows, and heightened investor confidence.
The country’s BOP shifted from a deficit of $1.21 billion in 2023 to a surplus of $6.83 billion in 2024. This improvement was driven by strong performances in both the current and capital account positions. The positive trend had already been evident earlier, with Nigeria reporting a $5.14 billion surplus in its current account for the first nine months of 2023, hinting at a broader recovery.
In total, Nigeria’s current and capital accounts posted a combined surplus of $17.22 billion in 2024, a significant rise from $2.59 billion in 2023. The trade sector was the key driver, with exports increasing and imports falling.
Nigeria’s goods trade surplus hit $13.17 billion in 2024, supported by a 48.3 per cent rise in gas exports and a 24.6 per cent increase in non-oil exports. On the import side, petroleum imports decreased by 23.2 per cent, while non-oil imports fell by 12.6 per cent, reflecting the effects of foreign exchange liberalisation, reduced import consumption, and efforts to boost local production.
Diaspora remittances also played a crucial role in improving Nigeria’s external position. Personal transfers into the country rose by 8.9 per cent to $20.93 billion, while remittances through International Money Transfer Operators (IMTOs) surged 43.5 per cent to $4.73 billion.
Additionally, Nigeria secured $3.37 billion in official development assistance, up 6.2 per cent from the previous year, demonstrating stronger global support for the country’s reform efforts.
The positive performance extended to Nigeria’s external reserves, which rose by $6 billion to $40.19 billion, the highest level in nearly three years. The reserves increase was driven not only by the BOP surplus but also by improved foreign exchange inflows from portfolio investments and development finance institutions.
The improvement in Nigeria’s external finances was also evident in a significant reduction in net errors and omissions, which dropped by 79.5 per cent. The CBN attributed this to better data quality, improved reporting standards, and enhanced inter-agency coordination on financial statistics.
The turnaround in Nigeria’s external financial position is largely attributed to the government’s ongoing reform efforts. Since 2023, key macroeconomic changes—such as the liberalisation and unification of the foreign exchange market, removal of fuel subsidies, and tighter monetary policies—have helped restore investor confidence and strengthened the external sector.
CBN governor Olayemi Cardoso, highlighted the importance of these reforms, “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability. This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
Saturday, May 10, 2025
