Balance of Payments: Nigeria Records $6.83 billion Surplus
The Central Bank of Nigeria, CBN, says that it has recorded a Balance of Payments, BOP, surplus of $6.83 billion for the 2024 financial year, marking a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The Central Bank of Nigeria, CBN, says that it has recorded a Balance of Payments, BOP, surplus of $6.83 billion for the 2024 financial year, marking a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
According to the CBN, this improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
According to the CBN, this improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
The apex bank spoke in a statement signed by its Acting Director, Corporate Communications, Mrs Sidi Ali Hakama, noting that the current and capital account recorded a surplus of $17.22 billion in 2024, underpinned by a goods trade surplus of $13.17 billion.
She stressed that petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion.
On the export side, gas exports rose by 48.3% to $8.66 billion, even as non-oil exports increased by 24.6% to $7.46 billion. Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93 billion.
Also, International Money Transfer Operator, IMTO, inflows surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora, just as official development assistance also rose by 6.2% to $3.37 billion.
Under the Financial Account and Reserve, Nigeria recorded a net acquisition of financial assets totalling $12.12 billion, followed by Portfolio investment inflows, which more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability.
Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains.
Furthermore, the country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, bolstering its external buffer, apart from the
improvement in Data Integrity Notably, net errors and omissions which narrowed significantly by 79.5% to negative $5.10 billion in 2024, down from $24.90 billion in 2023, reflecting substantial improvements in data availability and capture, representing a major advance in data accuracy, transparency, and overall reporting integrity.
Under the Financial Account and Reserve, Nigeria recorded a net acquisition of financial assets totalling $12.12 billion, followed by Portfolio investment inflows, which more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability.
Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains.
Furthermore, the country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, bolstering its external buffer, apart from the
improvement in Data Integrity Notably, net errors and omissions which narrowed significantly by 79.5% to negative $5.10 billion in 2024, down from $24.90 billion in 2023, reflecting substantial improvements in data availability and capture, representing a major advance in data accuracy, transparency, and overall reporting integrity.
Outlook and Policy Impact
The 2024 Balance Of Payments surplus highlights the effectiveness of Nigeria’s ongoing reform agenda even as the
liberalisation and unification of the foreign exchange market, ensured a disciplined monetary policy approach to managing inflation and stabilising the naira, as well as coordinating fiscal and monetary measures which all contributed to enhanced competitiveness and investor sentiment.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” Cardoso added, stressing that, “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
The 2024 Balance Of Payments surplus highlights the effectiveness of Nigeria’s ongoing reform agenda even as the
liberalisation and unification of the foreign exchange market, ensured a disciplined monetary policy approach to managing inflation and stabilising the naira, as well as coordinating fiscal and monetary measures which all contributed to enhanced competitiveness and investor sentiment.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” Cardoso added, stressing that, “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
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