In Major Economic Resurgence, Nigeria Recorded $6.83bn Balance of Payments Surplus in 2024

•Cardoso: Improvement reflects impact of macroeconomic reforms, renewed investor confidence, others

•Petroleum imports declined 23.2% to $14.06bn, gas exports rose to $8.66bn, non-oil $7.46bn

•Personal remittance inflows rose to $20.93bn, IMTOs $4.73bn 

•FDI declined to $1.08bn

James Emejo in Abuja and Nume Ekeghe in Lagos

In major economic comeback, Nigeria recorded a Balance of Payments (BOP) surplus of $6.83 billion in 2024.

This marked a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.

The Central Bank of Nigeria (CBN) announced the recovery in a statement issued yesterday by the apex bank’s acting Director, Corporate Communications, Mrs. Sidi-Ali Hakama.

BOP is a record of all economic transactions between a country’s residents and the rest of the world, including trade in goods and services, income flows, and capital transfers, over a specific period.

The central bank said the improvement reflected the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in the nation’s economy.

Under the review period, the current and capital account recorded a surplus of $17.22 billion, underpinned by a goods trade surplus of $13.17 billion.

Petroleum imports declined by 23.2 per cent to $14.06 billion, while non-oil imports fell by 12.6 per cent to $25.74 billion.

On the export side, gas exports rose by 48.3 per cent to $8.66 billion, while non-oil exports increased by 24.6 per cent to $7.46 billion.

Remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to $20.93 billion.

Also, International Money Transfer Operator (IMTO) inflows surged by 43.5 per cent to $4.73 billion, compared to $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora.

Official development assistance also rose by 6.2 per cent to $3.37 billion.

Net financial assets acquisitions amounted to $12.12 billion while portfolio investment inflows more than doubled, increasing by 106.5 per cent to $13.35 billion.

I’m addition, resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability.

Although Foreign Direct Investment fell by 42.3 per cent to $1.08 billion, the overall financial account posted notable gains.

The country’s external reserves increased by $6 billion to $40.19 billion by year-end 2024, bolstering its external buffer.

Notably, net errors and omissions narrowed significantly by 79.5 per cent to negative $5.10 billion in 2024, down from $24.90 billion in 2023, reflecting substantial improvements in data availability and capture.

According to CBN, this represented a major advance in data accuracy, transparency, and overall reporting integrity.  The year’s surplus highlighted the effectiveness of the country’s ongoing reform agenda.

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, the apex bank stated.

Responding to the economic feat, CBN Governor, Mr. Olayemi Cardoso, said, “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.”