The Central Bank of Nigeria (CBN) has reported a $6.83 billion Balance of Payments (BOP) surplus for 2024, a sharp contrast to the deficits of $3.34 billion in 2023 and $3.32 billion in 2022. This shift reflects the positive impact of ongoing macroeconomic reforms, stronger trade outcomes, and a boost in investor confidence.
Trade Boost and Strengthened External Accounts
The current and capital accounts posted a combined surplus of $17.22 billion, driven by a $13.17 billion goods trade surplus. Imports of petroleum products dropped by 23.2% to $14.06 billion, while non-oil imports fell 12.6% to $25.74 billion. On the export side, gas exports soared by 48.3% to $8.66 billion, and non-oil exports grew 24.6% to $7.46 billion.
Remittances also remained strong. Personal remittances increased by 8.9% to $20.93 billion, while inflows through International Money Transfer Operators (IMTOs) surged by 43.5% to $4.73 billion. Official development assistance rose modestly by 6.2% to $3.37 billion.
Financial Account Gains and Reserve Growth
Nigeria saw a net acquisition of financial assets amounting to $12.12 billion. Portfolio investments more than doubled, rising by 106.5% to $13.35 billion. Resident foreign currency holdings also expanded by $5.41 billion, a signal of growing confidence in the domestic economy. Although foreign direct investment declined by 42.3% to $1.08 billion, the overall financial account remained strong.
The nation’s external reserves rose by $6 billion to reach $40.19 billion by the end of 2024, providing a more solid buffer against external shocks.
Enhanced Data Accuracy
A notable development was the significant drop in net errors and omissions, which fell by 79.5% to -$5.10 billion, down from -$24.90 billion in 2023. This improvement points to better data collection, transparency, and reporting accuracy.
Reform Success and Economic Outlook
The BOP surplus reflects the positive outcomes of Nigeria’s reform agenda, including foreign exchange market liberalisation, tighter monetary policy, and coordinated fiscal measures aimed at enhancing economic competitiveness and investor confidence.
CBN Governor described the surplus as a sign of effective policy execution and a meaningful step toward sustainable economic growth. “This turnaround benefits investors, businesses, and everyday Nigerians,” he stated.