By Hosea Parah, Abuja
The Central Bank of Nigeria (CBN) has announced a significant achievement in the country’s economic performance for the year 2024, recording a Balance of Payments (BOP) surplus of $6.83 billion. This marks a dramatic reversal from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022, signaling a promising recovery for Nigeria’s economy.
The surplus reflects the impact of sweeping macroeconomic reforms, a stronger trade performance, and heightened investor confidence in the Nigerian market. The BOP surplus is underpinned by a notable improvement in both the current and capital accounts, which collectively recorded a surplus of $17.22 billion. A key contributor to this surplus was a goods trade surplus of $13.17 billion, alongside a reduction in imports. Petroleum imports dropped by 23.2%, totaling $14.06 billion, while non-oil imports decreased by 12.6%, amounting to $25.74 billion.
On the export side, Nigeria experienced a significant boost, with gas exports rising by 48.3% to $8.66 billion and non-oil exports increasing by 24.6% to $7.46 billion. In addition, remittance inflows from the Nigerian diaspora remained strong, with personal remittances growing by 8.9% to $20.93 billion. The International Money Transfer Operators (IMTO) saw a surge of 43.5%, reaching $4.73 billion, a sign of growing financial engagement from Nigerians abroad. Official development assistance also grew by 6.2% to $3.37 billion.
The financial account also showed significant improvement. Nigeria recorded a net acquisition of financial assets totaling $12.12 billion, driven in part by a 106.5% increase in portfolio investment inflows, which reached $13.35 billion. However, foreign direct investment (FDI) experienced a 42.3% decline, falling to $1.08 billion. Despite this, the overall financial account showed promising results, contributing to the growth in external reserves.
As of the end of 2024, Nigeria’s external reserves had increased by $6.0 billion, reaching $40.19 billion, strengthening the country’s external buffer. This growth in reserves further reflects confidence in the country’s financial stability.
A key milestone in this economic turnaround is the significant improvement in data integrity. Net errors and omissions narrowed dramatically by 79.5%, dropping to negative $5.10 billion in 2024, compared to $24.90 billion in 2023. This indicates enhanced transparency and better data reporting.
Commenting on the achievement, the Governor of the Central Bank of Nigeria, said, “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 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform agenda, which includes the liberalisation and unification of the foreign exchange market, a disciplined approach to monetary policy to control inflation and stabilize the naira, and coordinated fiscal and monetary efforts that have collectively boosted Nigeria’s economic competitiveness and investor sentiment.
This financial performance marks a hopeful chapter in Nigeria’s economic story, promising a more stable and attractive environment for both domestic and international investors.