… Trade surplus hits $17.22bn, signals economic resurgence
… Petroleum imports fall by 23.2% to $14.06bn, non-oil imports drop 12.6%
By Charles Ebi
Central Bank of Nigeria ,CBN, has announced a Balance of Payments ,BOP, surplus of $6.83bn for the 2024 financial year, marking a decisive turnaround from deficits of $3.34bn in 2023 and $3.32bn in 2022.
This improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
The apex bank stated that the current and capital account recorded a surplus of $17.22bn in 2024, underpinned by a goods trade surplus of $13.17bn.
The CBN stated that petroleum imports declined by 23.2% to $14.06bn, while non-oil imports fell by 12.6% to $25.74bn.
On the export side, gas exports rose by 48.3% to $8.66bn, and non-oil exports increased by 24.6% to $7.46bn.
Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93bn.
International Money Transfer Operator ,IMTO, inflows surged by 43.5% to $4.73bn, up from $3.30bn in 2023, reflecting stronger engagement from the Nigerians in diaspora.
The CBN stated that official development assistance also rose by 6.2% to $3.37bn, with improved financial account and reserve position which enabled Nigeria to record a net acquisition of financial assets totalling $12.12bn.
Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35bn, while resident foreign currency holdings grew by $5.41bn, indicating stronger confidence in domestic economic stability.
Although foreign direct investment fell by 42.3% to $1.08bn, the overall financial account posted notable gains.
The country’s external reserves increased by $6.0bn to $40.19bn by year-end 2024, bolstering its external buffer.
The apex bank noted further that there was marked improvement in data integrit as net errors and omissions narrowed significantly by 79.5% to negative $5.10bn in 2024, down from $24.9bn in 2023, reflecting substantial improvements in data availability and capture.
This, it added, represents a major advance in data accuracy, transparency, 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”, the CBN stated.
In the financial account, Nigeria recorded a net acquisition of financial assets totaling $12.12 billion, marking a recovery in capital inflows and market confidence. Portfolio investments more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings rose by $5.41 billion—an indicator of growing trust in the stability of Nigeria’s financial system.
Although foreign direct investment ,FDI, fell by 42.3% to $1.08 billion, the overall financial account posted substantial gains, largely supported by favorable portfolio flows and asset accumulation.
Nigeria’s external reserves increased by $6.0 billion, closing the year at $40.19 billion, enhancing the country’s external buffer and providing greater capacity for exchange rate defense and economic resilience.
Significantly, net errors and omissions fell by 79.5% to negative $5.10 billion, from a high of $24.90 billion in 2023. This sharp decline points to improved data integrity, better reporting mechanisms, and enhanced transparency in external account monitoring, the apex bank stated.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso was quoted to have said the positive turnaround in the country’s external finances is evidence of effective policy implementation and the bank’s unwavering commitment to macroeconomic stability.
