The Central Bank of Nigeria has declared a spectacular Balance of Payments surplus of $6.83 billion for the fiscal year 2024, representing a significant rebound from prior deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
Comprehensive macroeconomic reforms, enhanced trade performance, and rising investor confidence in the Nigerian economy are all credited with this encouraging recovery.
The CBN noted in its report that the goods trade surplus of $13.17 billion supported the current and capital account surplus of $17.22 billion.
“Petroleum imports fell by 23.2 per cent to $14.06bn, while non-oil imports decreased by 12.6 per cent to $25.74bn,” the CBN stated, reflecting a shift toward more efficient import management.
On the export front, the bank revealed a significant rise in both gas and non-oil exports. Gas exports surged by 48.3 per cent, reaching $8.66bn, while non-oil exports grew by 24.6 per cent to $7.46bn.
The CBN has also indicated a consistent influx of remittances, with individual remittances rising by 8.9 percent to reach $20.93 billion.
Furthermore, inflows through International Money Transfer Operators (IMTO) surged by 43.5 percent to $4.73 billion, an increase from $3.30 billion in 2023, showcasing significant participation from Nigerians living abroad.
Official development assistance also increased by 6.2 percent to $3.37 billion, adding to the financial account and overall reserves position.
The country achieved a net acquisition of financial assets of $12.12 billion, boosted by a 106.5 percent increase in portfolio investment inflows to $13.35 billion.
However, foreign direct investment saw a decline, falling by 42.3 per cent to $1.08bn. Despite this, the overall financial account posted impressive gains.
The nation’s external reserves increased by $6.0 billion to $40.19 billion at the end of 2024, bolstering the external buffer.
The CBN also reported significant progress in data integrity, with net mistakes and omissions falling by 79.5% to minus $5.10 billion in 2024, compared to $24.9 billion in 2023.
This change is viewed as a big step forward in transparency and data reporting.
“The 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform agenda,” said the Governor of the Central Bank of Nigeria.
“The liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have all contributed to enhanced competitiveness and investor sentiment.”
“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” the CBN added.
