The International Monetary Fund’s World Economic Outlook Database indicators have revealed that Nigeria’s current account balance recorded a surplus of $1.432 billion in 2024.
The rise in FG’s account for the period represents a substantial increase from the $1.21 billion surplus recorded in 2023.
A country’s current account balance represents the combined total of its trade balance, net income, direct transfers, and asset income, providing a comprehensive picture of its international economic transactions.
It reflects the balance between exports and imports, income earned and paid, and asset increases or decreases.
A positive balance indicates a net-lending position, while a negative balance indicates a net-borrowing position.
The country’s growing gross national savings and investments are responsible for the improvement in the current account balance.
In 2024, Nigeria’s gross national savings increased to 26.32 percent of Gross gross Product, up from 24.61 percent in 2023.
Total investment also rose to 25.75 percent of GDP in 2024, compared to 24.28 percent in 2023.
Economic experts have hailed this development as a sign of a robust economy driven by increased economic activity and confidence.
The growth in savings suggests a rise in disposable income and a shift towards a more savings-oriented economy, while the increase in investment indicates a boost in economic activity and potential for future growth.
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