When President Bola Ahmed Tinubu assumed office on May 29, 2023, he inherited an economy under significant strain. Less than two years later, signs of recovery are emerging, according to a recent statement from the Central Bank of Nigeria (CBN).
In a report titled “Nigeria Posts $6.83 Billion Balance of Payments Surplus in 2024, Signaling Economic Resurgence”, the CBN announced that the country achieved a Balance of Payments (BOP) surplus of $6.83 billion in 2024. This marks a dramatic improvement from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The BOP surplus, which reflects a situation where a country’s exports exceed its imports, underscores the positive impact of recent macroeconomic reforms, improved trade performance, and growing investor confidence.
During the review period, Nigeria’s current and capital accounts posted a surplus of $17.22 billion, driven largely by a goods trade surplus of $13.17 billion. Notably, petroleum imports dropped by 23.2% to $14.06 billion, while non-oil imports declined by 12.6% to $25.74 billion.
On the export front, gas exports soared by 48.3% to $8.66 billion, and non-oil exports rose by 24.6% to $7.46 billion. Remittance inflows remained strong, with personal remittances increasing by 8.9% to $20.93 billion. Inflows through International Money Transfer Operators (IMTOs) surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023.
Additional support came from official development assistance, which climbed 6.2% to $3.37 billion. Portfolio investment inflows more than doubled, rising 106.5% to $13.35 billion, while net financial asset acquisitions stood at $12.12 billion. Resident foreign currency holdings also increased by $5.41 billion, indicating stronger domestic confidence.
Although Foreign Direct Investment (FDI) dropped by 42.3% to $1.08 billion, the overall financial account recorded significant gains. External reserves grew by $6 billion, reaching $40.19 billion by the end of 2024.
In a key development, net errors and omissions narrowed sharply by 79.5%, falling to -$5.10 billion from -$24.90 billion the previous year. The CBN attributed this to improved data collection and reporting accuracy.
The apex bank highlighted that recent economic reforms; including the liberalization and unification of the foreign exchange market, disciplined monetary policy, and coordinated fiscal efforts, have all contributed to this positive momentum.
CBN Governor, Mr. Olayemi Cardoso, hailed the progress, stating, “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.”
