CBN $6.83bn 2024 BOP Surplus
Nigeria recently recorded $6.83 billion balance of payments (BOP) surplus in 2024, a sharp reversal from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
In a statement released by the Central Bank of Nigeria (CBN), Nigeria saw a net acquisition of financial assets amounting to $12.12 billion, with portfolio investment inflows increasing to $13.35 billion which is a 106.5% rise from the previous year.
The Central Bank of Nigeria (CBN) noted that the surplus reflects an effective policy implementation and our unwavering commitment to macroeconomic stability while highlighting the success of ongoing reforms and renewed investor confidence in the country.
Resident foreign currency holdings rose by $5.41 billion, reflecting increasing confidence in Nigeria’s economic future. Although, foreign direct investment fell by 42.3% to $1.08 billion, the financial account still posted a strong overall performance.
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The current and capital accounts jointly recorded a surplus of $17.22 billion which was largely driven by $13.17 billion goods trade surplus.
Petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion. On the export side, gas exports surged by 48.3% to $8.66 billion, while non-oil exports rose by 24.6% to $7.46 billion.
Remittances from Nigerians abroad remained buoyant which personal remittance inflows increasing by 8.9% to $20.93 billion, while International Money Transfer Operator (IMTO) inflows rose by 43.5% to $4.73 billion, up from $3.30 billion in 2023. Official development assistance also increased by 6.2%, reaching $3.37 billion.
Nigeria’s external reserves increased by $6.0 billion to $40.19 billion by the end of 2024, providing a greater buffer for the economy. Net errors and omissions reduced by 79.5% to $5.10 billion, indicating a considerable increase in data accuracy and reporting.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the CBN Governor.
“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” he added.
The CBN attributed the gains to reforms including foreign exchange market liberalisation, disciplined monetary policies, and improved coordination between fiscal and monetary authorities, which is all aimed at boosting competitiveness and stability.
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