Nigeria posts $6.83 billion payments surplus in 2024, first in three years

The Central Bank of Nigeria has said Nigeria recorded a balance of payments surplus of $6.83 billion in 2024, ending three years of deficits.

The bank disclosed this Tuesday in a statement signed by its Acting Director of Corporate Communications, Hakama Ali.

The balance of payments is a statistical statement that summarises all economic transactions between a country’s residents and non-residents during a specific period. It helps countries monitor their international monetary transactions, assess their economic performance, and make informed policy decisions.

Balance of payment also provides insights into a country’s economic strength and its ability to compete in the global market.

According to the CBN, in 2023, the country posted a deficit of $3.34 billion. The previous year, it was $3.32 billion. The central bank said the 2024 surplus reflected the results of key economic reforms, better trade performance, and improved data quality.

Rising Exports, Falling Imports

The current and capital account showed a surplus of $17.22 billion, supported by a goods trade surplus of $13.17 billion.

Petroleum imports dropped by 23.2 per cent to $14.06 billion, while non-oil imports fell by 12.6 per cent to $25.74 billion. On the export side, gas exports rose by 48.3 per cent to $8.66 billion, and non-oil exports increased by 24.6 per cent to $7.46 billion.

Personal remittances increased by 8.9 per cent to $20.93 billion, while inflows from International Money Transfer Operators (IMTOs) rose by 43.5 per cent to $4.73 billion, up from $3.30 billion in 2023.

Official development assistance also increased by 6.2 per cent to $3.37 billion.

Portfolio investment inflows more than doubled, growing by 106.5 per cent to $13.35 billion. Foreign currency holdings by residents also grew by $5.41 billion, showing greater confidence in the economy. However, foreign direct investment fell by 42.3 per cent to $1.08 billion.

Overall, Nigeria recorded a net acquisition of financial assets totalling $12.12 billion.

Nigeria’s external reserves rose by $6 billion, reaching $40.19 billion at the end of 2024.

The CBN also reported a significant improvement in data reporting. Net errors and omissions — which often reflect unrecorded transactions — narrowed by 79.5 per cent to minus $5.10 billion, down from minus $24.90 billion in 2023.

READ ALSO: Oil palm giant Presco reports 140% surge in profit as Ghanaian expansion boosts revenue

Reforms driving change

The CBN linked the positive results to key reforms, including the liberalisation and unification of the foreign exchange market, stricter monetary policy to manage inflation and stabilise the naira, and better coordination between fiscal and monetary authorities.

“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the CBN governor. “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”