The Nigerian economy is showing renewed signs of resilience, as the Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 fiscal year—a significant turnaround from deficits recorded in the previous two years.
This development, disclosed in a statement issued by the apex bank on Wednesday, marks a departure from the $3.34 billion and $3.32 billion deficits posted in 2023 and 2022 respectively.
According to the CBN, the improvement reflects the cumulative effect of far-reaching macroeconomic reforms, stronger trade fundamentals, and growing investor confidence in Nigeria’s fiscal and monetary policy direction.
Trade Surplus and Decline in Imports
The current and capital accounts registered a combined surplus of $17.22 billion in 2024, largely driven by a robust goods trade surplus of $13.17 billion. Petroleum imports dropped by 23.2% to $14.06 billion, while non-oil imports saw a 12.6% decline, totaling $25.74 billion for the year.
On the export front, Nigeria recorded significant gains, with gas exports increasing by 48.3% to $8.66 billion, and non-oil exports rising by 24.6% to $7.46 billion. The data reflects a strategic shift toward export diversification and import substitution.
Remittances and Investments Fuel Capital Inflows
Personal remittances remained strong, climbing by 8.9% to $20.93 billion. Inflows through International Money Transfer Operators (IMTOs) surged by 43.5% to $4.73 billion, compared to $3.30 billion in 2023—signaling deeper engagement by the Nigerian diaspora.
Official development assistance also rose modestly by 6.2% to $3.37 billion.
While foreign direct investment (FDI) dipped by 42.3% to $1.08 billion, the financial account still posted positive momentum, buoyed by a 106.5% jump in portfolio investment inflows to $13.35 billion. Resident foreign currency holdings also increased by $5.41 billion, indicating stronger faith in the local economy.
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External Reserves and Data Integrity Improve
Nigeria’s external reserves rose by $6.0 billion to reach $40.19 billion by the end of 2024, reinforcing the country’s external buffer and creditworthiness.
Meanwhile, net errors and omissions—a key metric of statistical discrepancies—narrowed dramatically by 79.5% to negative $5.10 billion, down from $24.90 billion in 2023. The CBN attributed this to improved data collection and reporting practices, marking a step forward in transparency and accountability.
Reforms Driving Results
The CBN credited the foreign exchange market liberalisation, disciplined monetary policy, and closer fiscal-monetary coordination as key contributors to the turnaround.
“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.”
Economists say the strong BOP performance could help stabilise the naira further, enhance investor sentiment, and lay a solid foundation for broader economic recovery heading into 2025.