The Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year, marking a significant recovery from the previous deficits of $3.34 billion in 2023 and $3.32 billion in 2022. This positive shift is attributed to the success of broad macroeconomic reforms, improved trade performance, and growing investor confidence in Nigeria’s economy.
The current and capital accounts recorded a surplus of $17.22 billion in 2024, with non-oil imports dropping by 12.6% to $25.74 billion. Gas exports surged by 48.3%, reaching $8.66 billion, while non-oil exports grew by 24.6%, totaling $7.46 billion. Additionally, remittance inflows remained strong, with personal remittances rising by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows surged by 43.5%, rising to $4.73 billion from $3.30 billion in 2023, reflecting increased engagement from the Nigerian diaspora. Official development assistance also rose by 6.2%, reaching $3.37 billion.
On the financial front, Nigeria saw a net acquisition of financial assets totaling $12.12 billion. Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while foreign currency holdings of residents grew by $5.41 billion, indicating stronger confidence in the country’s economic stability. Despite a 42.3% decline in foreign direct investment to $1.08 billion, the overall financial account showed significant gains. The country’s external reserves increased by $6.0 billion to $40.19 billion by the end of 2024, further strengthening its external buffer.
In terms of data integrity, net errors and omissions decreased by 79.5%, dropping to negative $5.10 billion in 2024 from $24.90 billion in 2023. This marked improvement in data accuracy and transparency highlights significant progress in the quality of economic reporting.
The 2024 BOP surplus reflects the effectiveness of Nigeria’s reform agenda, including the liberalization and unification of the foreign exchange market, a disciplined approach to managing inflation, and coordinated fiscal and monetary measures. These reforms have bolstered Nigeria’s competitiveness and attracted investor interest.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the Governor of the Central Bank of Nigeria. “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
