Nigeria posted a significant improvement in its external sector performance in the first quarter of 2026, with its current account surplus climbing to $4.98 billion, representing a 255.7 per cent increase from the previous quarter. The growth was largely fueled by stronger earnings from crude oil, gas and refined petroleum exports, coupled with a sharp reduction in fuel import bills.
The figures were contained in the latest Balance of Payments report released by the Central Bank of Nigeria on Wednesday.
According to the apex bank, “provisional balance of payments statistics for Q1 2026 show a current account surplus of $4.98bn, which was higher than the $1.40bn and $3.41bn recorded in the preceding quarter (Q4 2025) and corresponding period (Q1 2025) respectively.”
The latest surplus exceeded the $1.40 billion recorded in the final quarter of 2025 by more than two and a half times and was also substantially higher than the $3.41 billion posted during the same period last year.
The CBN attributed the stronger performance to rising export receipts from the oil and gas sector, growing refined petroleum exports, lower fuel import costs and a reduction in payments made abroad under the primary income account.
Data from the report showed that crude oil export earnings rose to $8.11 billion in the quarter, compared to $6.77 billion in Q4 2025. Gas exports also improved to $2.53 billion from $2.24 billion, while refined petroleum exports increased to $2.37 billion from $1.97 billion.
At the same time, the country’s spending on imported refined petroleum products declined dramatically, dropping by 87.5 per cent to $310 million from $2.48 billion recorded in the preceding quarter.
The stronger export performance translated into a substantial improvement in the goods account, which generated a surplus of $5.95 billion during the quarter. This was a significant increase from the $1.77 billion recorded in the last quarter of 2025 and the $3.35 billion achieved in the corresponding period of 2025.
Highlighting the development, the CBN stated: “The goods account (a major sub-account in the current account) recorded a significantly higher surplus of $5.95bn in Q1 2026, as against $1.77bn and $3.35bn recorded in the preceding quarter and corresponding period of 2025.”
Overall exports expanded to $15.49 billion from $13.36 billion in the previous quarter, supported mainly by increased crude oil and gas sales. Meanwhile, imports fell to $9.54 billion from $11.59 billion due largely to lower fuel and non-oil import demand.
Quarter-on-quarter, crude oil exports grew by 19.79 per cent to $8.11 billion, gas exports rose 12.95 per cent to $2.53 billion, while refined petroleum exports increased by 20.3 per cent to $2.37 billion. Non-oil exports also recorded modest growth, rising 4.62 per cent to $2.49 billion.
On the import side, non-oil imports declined by 10.49 per cent to $7.85 billion. Fuel imports witnessed the steepest drop, falling from $2.48 billion to $310 million. However, crude oil imports increased from $340 million to $1.39 billion during the same period.
Despite the strong trade performance, services transactions remained a drag on the current account. Net payments for services increased to $3.71 billion from $3.32 billion in the previous quarter.
Explaining the trend, the CBN noted: “The increase in net out-payments for services was largely due to increases in net debits in travel and other business services.”
The primary income account also remained in deficit, although the gap narrowed to $2.83 billion from $3.27 billion due to lower dividend and interest payments to foreign investors.
The report explained that “This was largely attributable to decrease in out-payments (dividend and interest) to non-residents’ investments mostly to direct investors.”
Meanwhile, inflows captured under the secondary income account, which includes diaspora remittances, weakened during the quarter. The surplus in the account declined to $5.57 billion from $6.21 billion, while personal transfers from Nigerians abroad dropped to $5.30 billion from $5.72 billion.
The financial account remained in deficit, with net borrowing increasing to $2.51 billion from $1.96 billion in the previous quarter. However, foreign portfolio investment inflows strengthened to $6.03 billion, compared to $5.27 billion in Q4 2025. Direct investment inflows eased slightly to $1.03 billion from $1.11 billion.
The CBN linked developments in the financial account to stronger portfolio investments, modestly weaker direct investment inflows, reserve accumulation and increased overseas investment activities by Nigerian residents.
Overall, Nigeria recorded a balance of payments surplus of $2.38 billion during the first quarter of 2026, slightly below the $2.67 billion achieved in the preceding quarter. Nevertheless, the country’s external reserves improved considerably, rising from $45.75 billion at the end of December 2025 to $48.35 billion by March 2026.
One area of concern in the report was the widening of net errors and omissions, which expanded to a negative $7.49 billion from a negative $3.36 billion in the previous quarter.
The latest data suggest that higher oil production, stronger petroleum export earnings and reduced reliance on imported fuel continued to bolster Nigeria’s external position in early 2026, helping offset weaker remittance inflows and rising service-related payments abroad.
(Ripples)
