The economy of Nigeria has seen a significant turnaround, with the Central Bank announcing a $6.83 billion balance of payments surplus in 2024. This marks a notable shift from the $3.34 billion and $3.32 billion deficits recorded in 2023 and 2022, respectively.
The surplus can be attributed to a combination of robust macroeconomic reforms, improved trade dynamics, and increased investor confidence. The current and capital accounts jointly recorded a surplus of $17.22 billion, driven largely by a positive trade balance.
Nigeria achieved a goods trade surplus of $13.17 billion, with petroleum imports declining by 23.2% to $14.06 billion and non-oil imports dropping by 12.6% to $25.74 billion. Conversely, gas exports surged by 48.3% to $8.66 billion, while non-oil exports grew by 24.6% to $7.46 billion.
Remittance inflows continued their upward trend, with personal remittances rising by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows jumped by 43.5% to $4.73 billion, reflecting stronger engagement from the Nigerian diaspora.
You may also like: Petroleum Sector Stakeholders Deny Allegations of Economic Sabotage
The financial account also saw positive developments, with Nigeria acquiring a net $12.12 billion in financial assets during the year. Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion. As a result, Nigeria’s external reserves rose by $6.0 billion, closing the year at $40.19 billion.
A notable achievement in 2024 was the significant narrowing of net errors and omissions in the balance of payments account, dropping by 79.5% to negative $5.10 billion. This improvement stems from advances in data collection, reporting infrastructure, and transparency in tracking cross-border transactions.
The Central Bank attributed the surplus to Nigeria’s ongoing economic reform agenda, including the liberalization and unification of the foreign exchange market, tighter monetary policy, and coordinated fiscal and monetary actions.
The balance of payments surplus offers policymakers a stronger platform to pursue economic growth while maintaining external stability. It also reassures domestic and international stakeholders that Nigeria is on a recovery path following years of external imbalances.
With continued focus on export expansion, investment inflows, and macroeconomic stability, Nigeria is well-positioned to strengthen its external sector and consolidate the gains recorded in 2024.
The $6.83 billion balance of payments surplus in 2024 marks a significant milestone in Nigeria’s economic journey. The Central Bank’s efforts to improve trade dynamics, increase investor confidence, and enhance data accuracy have contributed to this achievement.
