Nigeria’s economy reacts to CBN’s $6.83bn surplus

Nigeria’s economy reacts to CBN’s $6.83bn surplus

The Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP) surplus of 6.83 billion dollars for the 2024 financial year.

In a statement issued by Hakama Sidi-Ali, Director of the CBN’s Corporate Communications Department, the apex bank described the development as a decisive turnaround from the deficits of 3.34 billion dollars in 2023 and 3.32 billion dollars in 2022.

Sidi-Ali attributed the improvement to wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

“The current and capital account recorded a surplus of 17.22 billion dollars in 2024, underpinned by a goods trade surplus of 13.17 billion dollars.

“Petroleum imports declined by 23.2 per cent to 14.06 billion dollars, while non-oil imports dropped by 12.6 per cent to 25.74 billion dollars.

“On the export side, gas exports rose by 48.3 per cent to 8.66 billion dollars, and non-oil exports increased by 24.6 per cent to 7.46 billion dollars,” she said.

She further noted that remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to 20.93 billion dollars.

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“International Money Transfer Operator inflows surged by 43.5 per cent to 4.73 billion dollars, up from 3.30 billion dollars in 2023, reflecting stronger engagement from the Nigerian diaspora,” she added.

According to her, official development assistance also increased by 6.2 per cent to 3.37 billion dollars.

“Nigeria recorded a net acquisition of financial assets totalling 12.12 billion dollars.

“Portfolio investment inflows more than doubled, increasing by 106.5 per cent to 13.35 billion dollars, while resident foreign currency holdings grew by 5.41 billion dollars, indicating stronger confidence in domestic economic stability,” she said.

Although Foreign Direct Investments (FDIs) declined by 42.3 per cent to 1.08 billion dollars, Sidi-Ali said the overall financial account still posted notable gains.

She noted that the country’s external reserves rose by 6.0 billion dollars to 40.19 billion dollars by year-end 2024, strengthening its external buffer.

“Marked improvement in data integrity – notably, net errors and omissions narrowed significantly by 79.5 per cent to negative 5.10 billion dollars in 2024, down from 24.90 billion dollars in 2023.

“This reflects substantial improvements in data availability and capture, representing a major advance in data accuracy, transparency, and overall reporting integrity,” she stated.

Sidi-Ali said the 2024 BOP surplus underscored the effectiveness of Nigeria’s ongoing reform agenda.

She cited the liberalisation and unification of the foreign exchange market, disciplined monetary policy for inflation control and Naira stability, and coordinated fiscal and monetary measures as key drivers of enhanced competitiveness and investor sentiment.

Meanwhile, CBN Governor Yemi Cardoso described the turnaround in the country’s external finances as a clear sign of effective policy implementation and strong commitment to macroeconomic stability.

“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” Cardoso said.

Nigeria’s economy reacts to CBN’s $6.83bn surplus

(NAN)