Nigeria Achieves $6.83bln Balance of Payments Surplus in 2024

Nigeria’s economy has seen a significant turnaround, with the Central Bank of Nigeria (CBN) announcing a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year.

According to a statement on Wednesday by Mrs. Sidi-Ali Hakama Acting Director, Corporate Communications CBN, this marks a substantial shift from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022.

The improvement is attributed to wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

The current and capital account recorded a surplus of $17.22 billion in 2024, driven by a goods trade surplus of $13.17 billion.

Petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion.

Conversely, gas exports rose by 48.3% to $8.66 billion, and 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, and International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion.

Nigeria’s financial account also saw notable gains, with a net acquisition of financial assets totaling $12.12 billion.

Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion.

Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted significant gains.

The country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, bolstering its external buffer.

The CBN governor attributed the positive turnaround to effective policy implementation and the government’s commitment to macroeconomic stability.

“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” the governor said.

“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”

The improvement in data integrity is also noteworthy, with net errors and omissions narrowing significantly by 79.5% to negative $5.10 billion in 2024, down from $24.90 billion in 2023.

This reflects substantial improvements in data availability and capture, representing a major advance in data accuracy, transparency, and overall reporting integrity.