Signaling Economic Resurgence
The Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP)
surplus of $6.83 billion for the 2024 financial year, marking a decisive turnaround from
deficits of $3.34 billion in 2023 and $3.32 billion in 2022. This improvement reflects the
impact of wide-ranging macroeconomic reforms, stronger trade performance, and
renewed investor confidence in Nigeria’s economy.
Stronger Trade and External Account Performance
The current and capital account recorded a surplus of $17.22 billion in 2024,
underpinned 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. On the
export side, 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. International Money Transfer Operator (IMTO) inflows surged by 43.5%
to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the
Nigerian diaspora. Official development assistance also rose by 6.2% to $3.37 billion.
Improved Financial Account and Reserve Position
Nigeria recorded a net acquisition of financial assets totalling $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, indicating stronger confidence
in domestic economic stability. Although foreign direct investment fell by 42.3% to
$1.08 billion, the overall financial account posted notable gains.
The country’s external reserves increased by $6.0 billion to $40.19 billion by year-end
2024, bolstering its external buffer.Marked Improvement in Data Integrity
Notably, net errors and omissions narrowed significantly by 79.5% to negative $5.10
billion in 2024, down from $24.90 billion in 2023, reflecting substantial improvements
in data availability and capture. This represents a major advance in data accuracy,
transparency, and overall reporting integrity.
Outlook and Policy Impact
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.”