CBN Declares $6.83bn Balance of Payments Surplus, Signals Economic Recovery

The Central Bank of Nigeria (CBN) has announced a $6.83 billion Balance of Payments (BOP) surplus for 2024, marking a significant shift from the deficits recorded in the previous two years.

In a statement on Wednesday, CBN’s Director of Corporate Communications, Hakama Sidi-Ali, attributed the surplus to key macroeconomic reforms, improved trade performance, and renewed investor confidence.

According to her, both the current and capital accounts showed a combined surplus of $17.22 billion, driven largely by a $13.17 billion trade surplus. Petroleum imports dropped by 23.2% to $14.06 billion, while non-oil imports declined by 12.6% to $25.74 billion. Meanwhile, gas exports surged by 48.3% to $8.66 billion, and non-oil exports rose by 24.6% to $7.46 billion.

Personal remittances also showed resilience, rising by 8.9% to $20.93 billion, while inflows from International Money Transfer Operators grew by 43.5% to $4.73 billion. Official development assistance rose to $3.37 billion, reflecting stronger external engagement.

On the financial account, Nigeria acquired $12.12 billion in net financial assets. Portfolio investment inflows more than doubled to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion. Although Foreign Direct Investments (FDIs) declined by 42.3% to $1.08 billion, the overall financial account saw strong performance.

The CBN also reported that Nigeria’s external reserves grew by $6 billion to reach $40.19 billion by the end of 2024. Additionally, net errors and omissions in the BOP narrowed sharply by 79.5%, from -$24.90 billion in 2023 to -$5.10 billion, indicating improved data accuracy and transparency.

Sidi-Ali emphasized that the positive shift highlights the success of the government’s reform agenda, including foreign exchange market unification, disciplined monetary policy, and fiscal coordination.

CBN Governor Yemi Cardoso hailed the development as a milestone for Nigeria’s economic recovery, noting that it reflects effective policy implementation and a commitment to macroeconomic stability.

“This surplus is a critical step forward that strengthens confidence in the Nigerian economy and benefits businesses, investors, and citizens alike,” Cardoso said.