The Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP) surplus of $6.83 billion for the financial year 2024. This marks a significant turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022. The positive shift reflects wide-ranging economic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
Strong Trade Performance
In 2024, the current and capital accounts showed a surplus of $17.22 billion, primarily driven by a goods trade surplus of $13.17 billion. Notably, petroleum imports decreased by 23.2% to $14.06 billion, while non-oil imports dropped by 12.6% to $25.74 billion. On the export side, gas exports surged by 48.3% to $8.66 billion, and non-oil exports rose by 24.6% to $7.46 billion.
Remittance inflows also remained strong, with personal remittances increasing by 8.9% to $20.93 billion. Moreover, inflows from International Money Transfer Operators (IMTO) jumped by 43.5% to $4.73 billion, a significant rise from $3.30 billion in 2023, indicating enhanced support from the Nigerian diaspora. Additionally, official development assistance grew by 6.2% to $3.37 billion.
Improved Financial Account and Reserves
Nigeria recorded a net acquisition of financial assets totaling $12.12 billion. Portfolio investment inflows more than doubled, rising by 106.5% to $13.35 billion. Resident foreign currency holdings also increased by $5.41 billion, showcasing improved confidence in the country’s economic stability. Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account showed notable gains.
By the end of 2024, Nigeria’s external reserves had increased by $6 billion, reaching $40.19 billion, further strengthening the country’s financial buffer.
Data Accuracy Improvements
An important highlight of the new report is the significant reduction in net errors and omissions, which narrowed by 79.5% to negative $5.10 billion in 2024, down from $24.90 billion in 2023. This improvement indicates major strides in data accuracy and transparency.
Read Also: Air Peace Introduces Enhanced Boarding for Military, PWDs, and Business Class
Looking Ahead
The 2024 BOP surplus demonstrates the effectiveness of Nigeria’s reform agenda. The liberalization and unification of the foreign exchange market, a disciplined monetary policy, and coordinated fiscal measures have all contributed to the country’s improved competitiveness and investor sentiment.
“The positive turnaround in our external finances shows that our policies are working,” said the Governor of the Central Bank of Nigeria. “This surplus is a vital step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
As Nigeria moves forward, this robust balance of payments surplus signals growing confidence in its economy and a hopeful outlook for the future.
