By Emmanuel Kwada
The Central Bank of Nigeria (CBN) announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year.
This significant achievement follows two consecutive years of deficits, reporting $3.34 billion in 2023 and $3.32 billion in 2022. The robust surplus not only reflects the effectiveness of sweeping macroeconomic reforms but also signals renewed investor confidence in Africa’s largest economy.
The current and capital accounts recorded an impressive surplus of $17.22 billion, driven primarily by a goods trade surplus of $13.17 billion. Key highlights include a 23.2% decrease in petroleum imports, which fell to $14.06 billion, and a 12.6% drop in non-oil imports to $25.74 billion.
On the export front, gas exports surged by an impressive 48.3%, reaching $8.66 billion, while non-oil exports climbed by 24.6% to $7.46 billion—indicating a diversification of Nigeria’s export base.
Inflows from International Money Transfer Operators (IMTOs) skyrocketed by 43.5% to $4.73 billion
Remittance inflows remained a critical support for the economy, with personal remittances increasing by 8.9% to $20.93 billion. Moreover, inflows from International Money Transfer Operators (IMTOs) skyrocketed by 43.5% to $4.73 billion, highlighting growing engagement from the Nigerian diaspora. Official development assistance also saw a 6.2% rise, totaling $3.37 billion.
Nigeria’s financial account displayed notable strength with a net acquisition of financial assets amounting to $12.12 billion.
Portfolio investment inflows more than doubled, surging by 106.5% to $13.35 billion, while resident foreign currency holdings increased by $5.41 billion, reflecting heightened confidence in the domestic economic environment. However, foreign direct investment experienced a decline of 42.3%, settling at $1.08 billion, yet the overall financial account demonstrated remarkable resilience.
By year-end 2024, Nigeria’s external reserves had risen by $6.0 billion, reaching a total of $40.19 billion, providing a robust external buffer against economic volatility.
This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike
In a testament to advancing governance, net errors and omissions in the data significantly narrowed by 79.5% to negative $5.10 billion, down from $24.90 billion in 2023. This improvement underscores the strides made in data availability, accuracy, and overall reporting integrity.
The 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform
agenda. The liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have 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,” said the Governor of the Central Bank of Nigeria.
“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
