By Ayomide Otitoju
Nigeria’s economy is showing signs of recovery as the Central Bank of Nigeria (CBN) has reported a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year — a sharp turnaround from consecutive deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
In a statement released Wednesday, the apex bank attributed the improvement to a combination of macroeconomic reforms, stronger trade performance, and renewed investor confidence in the country’s economic outlook.
According to the report, Nigeria’s current and capital account recorded a combined surplus of $17.22 billion, supported by a goods trade surplus of $13.17 billion. Petroleum imports fell 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 surged by 48.3% to $8.66 billion, while non-oil exports rose by 24.6% to $7.46 billion. Personal remittances increased by 8.9% to $20.93 billion, with inflows from International Money Transfer Operators (IMTOs) jumping 43.5% to $4.73 billion, up from $3.30 billion in 2023.
The CBN also reported a net acquisition of financial assets amounting to $12.12 billion, with portfolio investment inflows more than doubling to $13.35 billion — a 106.5% increase. Resident foreign currency holdings rose by $5.41 billion, reflecting growing confidence in domestic financial stability.
However, foreign direct investment declined by 42.3% to $1.08 billion. Despite this drop, the financial account posted notable gains, and Nigeria’s external reserves increased by $6.0 billion, reaching $40.19 billion by the end of 2024.
In a significant development, net errors and omissions — a key metric for data integrity — fell sharply by 79.5% to a negative $5.10 billion, down from $24.90 billion in 2023. The CBN said the improvement reflects enhanced data accuracy and transparency.
Commenting on the development, the CBN Governor stated, “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.”
The central bank cited the liberalisation and unification of the foreign exchange market, a disciplined monetary policy to manage inflation and stabilize the naira, and coordinated fiscal efforts as key drivers of the country’s improved external position.
