CBN posts $6.83b balance of payments surplus - The Nation Newspaper (2025)

April 10, 2025 by Nduka Chiejina, Abuja

Following two consecutive years of external deficits, the Central Bank of Nigeria (CBN) has announced a surplus of $6.83 billion in Nigeria’s Balance of Payments (BOP) for the 2024 financial year.

This development represents a marked turnaround from the $3.34 billion and $3.32 billion deficits recorded in 2023 and 2022, respectively.

The BOP is a vital financial statement that captures a country’s economic transactions with the rest of the world. It is divided into two principal components—the current account, which includes trade in goods and services, income, and current transfers, and the capital and financial account, which tracks capital transfers and investments.

According to a statement released on Wednesday by the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi-Ali, the surplus recorded in 2024 reflects 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 for the year, driven in large part by a positive trade balance. The CBN disclosed that Nigeria achieved a goods trade surplus of $13.17 billion. Petroleum imports declined significantly by 23.2 percent, totaling $14.06 billion, while non-oil imports dropped by 12.6 percent to $25.74 billion.

On the export front, gas exports experienced a substantial boost, increasing by 48.3 percent to reach $8.66 billion. Non-oil exports also grew by 24.6 percent to $7.46 billion, pointing to a diversification of Nigeria’s export base and stronger global demand for Nigerian goods.

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Remittance inflows maintained their upward trajectory, with personal remittances rising by 8.9 percent to $20.93 billion. The value of inflows through International Money Transfer Operators (IMTOs) climbed to $4.73 billion, representing a 43.5 percent increase from the $3.30 billion recorded in 2023.

These gains underscore increased participation and engagement from the Nigerian diaspora. Additionally, official development assistance rose by 6.2 percent, reaching $3.37 billion.

The financial account also recorded positive developments. Nigeria acquired a net $12.12 billion in financial assets during the year. Portfolio investment inflows more than doubled, rising by 106.5 percent to $13.35 billion. There was also a notable increase in resident foreign currency holdings, which grew by $5.41 billion. These figures point to growing confidence in Nigeria’s domestic financial environment. However, foreign direct investment declined by 42.3 percent to $1.08 billion, a trend the CBN acknowledged while highlighting the overall strength of the financial account.

As a result of these improvements, Nigeria’s external reserves rose by $6.0 billion, closing the year at $40.19 billion. This increase enhances the country’s foreign exchange buffer and ability to withstand external shocks.

An important technical achievement in 2024 was the significant narrowing of net errors and omissions in the BOP account. The figure dropped sharply by 79.5 percent to negative $5.10 billion from $24.90 billion in 2023. According to the CBN, this improvement stems from advances in data collection, reporting infrastructure, and transparency in tracking cross-border transactions.

Commenting on the development, Mrs. Sidi-Ali attributed the BOP surplus to Nigeria’s ongoing economic reform agenda. She cited the liberalisation and unification of the foreign exchange market, tighter monetary policy to curb inflation and stabilise the naira, and coordinated fiscal and monetary actions as factors contributing to improved investor sentiment and external competitiveness.

Sidi-Ali in the statement said the turnaround in Nigeria’s external finances is a testament to the effectiveness of the policy strategies adopted throughout the year. “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” she stated.

The BOP surplus reported for 2024 offers policymakers a stronger platform to pursue economic growth while maintaining external stability. It also reassures both 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, the CBN believes Nigeria is well-positioned to strengthen its external sector and consolidate the gains recorded in 2024.

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