Nigeria Achieves $6.83bn Balance of Payments Surplus in 2024
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has announced a significant turnaround in Nigeria’s external financial position by reporting a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year.
This marks a substantial improvement from deficits of $3.34 billion recorded in 2023 and $3.32 billion in 2022, according to a statement released on Wednesday by Mrs. Sidi-Ali, Hakama, the Ag. Director of Corporate Communications at the CBN.
The CBN attributed this positive shift to the impact of extensive macroeconomic reforms, a stronger performance in trade, and a renewed sense of confidence among investors in Nigeria’s economy.
The statement revealed that the current and capital accounts together recorded a surplus of $17.22 billion in 2024, primarily driven by a surplus in the trade of goods amounting to $13.17 billion. Notably, petroleum imports saw a decline of 23.2%, falling to $14.06 billion, while non-oil imports decreased by 12.6% to $25.74 billion. On the export front, gas exports experienced a significant surge of 48.3%, reaching $8.66 billion, and non-oil exports also showed strong growth, increasing by 24.6% to $7.46 billion.
Mrs. Sidi-Ali also noted the resilience of remittance inflows, with personal remittances rising by 8.9% to $20.93 billion. Inflows through International Money Transfer Operators (IMTOs) witnessed an even more substantial increase of 43.5%, climbing to $4.73 billion from $3.30 billion in 2023, indicating stronger engagement from the Nigerian diaspora. Additionally, official development assistance saw a rise of 6.2%, reaching $3.37 billion.
Nigeria recorded a net acquisition of financial assets totaling $12.12 billion during the year. Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, suggesting increased confidence in domestic economic stability. Despite a decrease of 42.3% in foreign direct investment to $1.08 billion, the overall financial account demonstrated notable gains. The country’s external reserves also saw a positive movement, increasing by $6.0 billion to $40.19 billion by the end of 2024, thereby strengthening its external financial buffer.
A significant improvement was also recorded in data integrity, with net errors and omissions narrowing considerably by 79.5% to a negative $5.10 billion in 2024, down from $24.90 billion in 2023. The CBN stated that this reflects substantial progress in data availability and capture, representing a major advancement in data accuracy, transparency, and overall reporting integrity.
Mrs. Sidi-Ali stated that “The 2024 BOP surplus showcases the effectiveness of Nigeria’s ongoing reform agenda. The liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have all contributed to enhanced competitiveness and investor sentiment.”
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the Governor of the Central Bank of Nigeria. “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
