In a marked reversal from previous years, the Central Bank of Nigeria (CBN) reported a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year. This figure contrasts sharply with the deficits of $3.34 billion in 2023 and $3.32 billion in 2022, and it has been hailed as evidence of successful macroeconomic reforms, improved trade performance, and a resurgence in investor confidence in Nigeria’s economy.
In a statement released by the apex bank and signed by Acting Director of Corporate Communications, Sidi-Ali Hakama, the CBN detailed several factors underpinning this turnaround. Notably, the country’s current and capital accounts recorded a combined surplus of $17.22 billion during 2024. This impressive performance was largely driven by a goods trade surplus amounting to $13.17 billion, signaling enhanced competitiveness in international markets.
Among the key contributors to this robust external performance were shifts in import dynamics: petroleum imports fell by 23.2% to $14.06 billion, while non-oil imports declined by 12.6% to $25.74 billion. On the export front, the landscape was similarly positive. Gas exports surged by 48.3% to $8.66 billion, and non-oil exports climbed by 24.6% to $7.46 billion, reflecting the broad-based nature of Nigeria’s export recovery.
Remittance inflows also played a significant role in bolstering external accounts. The CBN reported that personal remittances increased by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows saw an even more substantial rise of 43.5% to $4.73 billion, up from $3.30 billion in 2023. These gains underscore the continuing support from the Nigerian diaspora amid global economic uncertainties. Meanwhile, official development assistance grew by 6.2% to $3.37 billion, further reinforcing Nigeria’s external financial position.
The financial account witnessed notable improvements as well. Nigeria posted a net acquisition of financial assets totaling $12.12 billion. Portfolio investment inflows more than doubled, surging by 106.5% to reach $13.35 billion, a clear indicator of renewed confidence in the country’s domestic stability. Additionally, resident foreign currency holdings increased by $5.41 billion, adding to the positive sentiment surrounding Nigeria’s economic prospects. Although foreign direct investment declined by 42.3% to $1.08 billion, the overall impact on the financial account was decisively favorable.
Backing these achievements, Nigeria’s external reserves expanded substantially, with an increase of $6.0 billion to reach $40.19 billion by the close of 2024. This improved reserve position not only provides a critical buffer against external shocks but also signals stronger international confidence in Nigeria’s economic management.
CBN officials described the surplus as a “decisive turnaround” reflective of a suite of structural and policy reforms aimed at strengthening the nation’s external performance. They credited these measures with enhancing trade competitiveness, curbing excessive import expenditure, and leveraging the substantial potential of the diaspora in boosting remittance flows.
As Nigeria navigates an evolving global economic landscape, the CBN’s latest report on the balance of payments suggests that targeted reforms and prudent management may well pave the way for sustained external and domestic economic stability. The surplus, representing a significant departure from the deficits of previous financial years, offers a promising outlook for the country’s future economic trajectory.
