The Central Bank of Nigeria (CBN) has announced a record Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year, marking a stark contrast to deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
This is contained in a statement issued by the Acting Director of Corporate Communications at the CBN, Mrs Sidi-Ali Hakama on Wednesday.
The CBN attributes this positive shift to the impact of comprehensive macroeconomic reforms, improved trade performance, and a resurgence in investor confidence within the Nigerian economy.
The nation’s current and capital accounts together recorded a substantial surplus of $17.22 billion in 2024, primarily driven by a robust goods trade surplus of $13.17 billion.
Notably, petroleum imports saw a significant decline of 23.2%, falling to $14.06 billion, while non-oil imports also decreased by 12.6% to $25.74 billion.
On the export front, gas exports experienced a remarkable surge of 48.3%, reaching $8.66 billion, and non-oil exports also showed strong growth, increasing by 24.6% to $7.46 billion.
Remittance inflows demonstrated resilience, with personal remittances increasing by 8.9% to $20.93 billion.
Inflows from International Money Transfer Operators (IMTOs) witnessed an even more significant jump of 43.5%, rising to $4.73 billion from $3.30 billion in 2023, indicating stronger engagement from the Nigerian diaspora.
Furthermore, official development assistance to the country rose by 6.2% to $3.37 billion.
Nigeria’s financial account also showed positive developments, recording a net acquisition of financial assets totalling $12.12 billion. Portfolio investment inflows more than doubled, increasing by an impressive 106.5% to $13.35 billion.
Resident foreign currency holdings also grew by $5.41 billion, signalling increased confidence in domestic economic stability.
Despite a 42.3% decrease in foreign direct investment to $1.08 billion, the overall financial account registered notable gains.
The country’s external reserves saw a healthy increase of $6.0 billion, reaching $40.19 billion by the end of 2024, thereby strengthening its external financial buffer.
In a significant improvement in data integrity, net errors and omissions narrowed considerably by 79.5% to a negative $5.10 billion in 2024, a substantial decrease from the negative $24.90 billion recorded in 2023. This reflects marked advancements in data availability, accuracy, transparency, and overall reporting integrity.
The CBN stated that the 2024 BOP surplus underscores the effectiveness of Nigeria’s ongoing economic reform agenda.
The liberalisation and unification of the foreign exchange market, a disciplined monetary policy aimed at managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have all contributed to enhanced competitiveness and improved investor sentiment.
According to Hakama, the Governor of the Central Bank of Nigeria stated, “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability.
This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
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