“It is a win for businesses,and everyday Nigerians” -CBN posts $6.83b Balance of Payments surplus in 2024

The Central Bank of Nigeria (CBN) has announced a balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year, signalling renewed momentum in the country’s economic trajectory.

The BOP—an essential indicator of a nation’s financial dealings with the rest of the world—has swung into positive territory after years of deficits, with the CBN citing major economic reforms, a trade revival, and growing investor confidence as key drivers behind the turnaround.

In a statement released on Wednesday and signed by Hakama Sidi-Ali, acting director of corporate communications, the apex bank revealed that this surplus contrasts sharply with the $3.34 billion deficit in 2023 and $3.32 billion in 2022.

“This surplus underscores the impact of far-reaching macroeconomic reforms and renewed confidence in Nigeria’s economic fundamentals,” the CBN noted.

The trade sector led the charge, with Nigeria recording a current and capital account surplus of $17.22 billion, largely propelled by a $13.17 billion goods trade surplus. A critical contributor to this performance: a sharp drop in petroleum imports, which fell by 23.2% to $14.06 billion. Non-oil imports also dipped by 12.6% to $25.74 billion.

This decline coincided with a major shift in domestic refining capacity. The Dangote Petroleum Refinery, one of the continent’s largest, began local petrol sales on September 20, 2024, reducing the nation’s reliance on foreign fuel sources.

On the export side, the numbers were equally impressive:

Gas exports surged by 48.3% to $8.66 billion Non-oil exports climbed by 24.6% to $7.46 billion

Nigeria’s growing diaspora engagement also played a pivotal role.

Personal remittances jumped 8.9% to $20.93 billion IMTO inflows soared 43.5% to $4.73 billion, Official development assistance increased 6.2% to $3.37 billion

These inflows were matched by robust capital movements.

Portfolio investments more than doubled, rising 106.5% to $13.35 billion Resident foreign currency holdings expanded by $5.41 billion

While foreign direct investment dipped 42.3% to $1.08 billion, the overall financial account showed strength, with net acquisition of financial assets hitting $12.12 billion.

The CBN further reported a significant build-up in external reserves, which rose by $6.0 billion to close the year at $40.19 billion. Additionally, net errors and omissions—a measure of unaccounted financial flows—dropped sharply by 79.5% to -$5.10 billion, reflecting improved data accuracy and transparency.

CBN Governor Olayemi Cardoso hailed the figures as evidence that Nigeria is turning a corner.

“This remarkable improvement in our external finances is a testament to deliberate policy implementation and our commitment to macroeconomic stability,” Cardoso stated.
“It is a win for investors, businesses, and everyday Nigerians.”