The CBN reports a $6.83bn BOP surplus for 2024, marking a major turnaround from deficits in previous years, driven by reforms and stronger trade

The Central Bank of Nigeria (CBN) has reported a significant balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year, marking a notable recovery from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022.

In an official statement, Hakama Sidi-Ali, Director of the CBN’s Corporate Communications Department, attributed the positive shift to extensive macroeconomic reforms, a stronger trade performance, and the renewed investor confidence in Nigeria’s economy.

The statement highlighted that Nigeria’s current and capital account registered a surplus of $17.22 billion in 2024. This surplus was mainly driven by a goods trade surplus of $13.17 billion.

Petroleum imports saw a decline of 23.2%, totalling $14.06 billion, while non-oil imports also dropped by 12.6% to $25.74 billion.

On the export side, Nigeria’s gas exports surged by 48.3%, reaching $8.66 billion, while non-oil exports rose by 24.6%, totalling $7.46 billion.

Sidi-Ali also noted the resilience of remittance inflows, with personal remittances rising by 8.9% to $20.93 billion.

International Money Transfer Operator (IMTO) inflows experienced a remarkable 43.5% increase, reaching $4.73 billion, up from $3.30 billion in 2023. This surge reflected increased engagement from the Nigerian diaspora.

The country recorded a net acquisition of financial assets totalling $12.12 billion in 2024. Portfolio investment inflows more than doubled, growing by 106.5% to $13.35 billion, while resident foreign currency holdings rose by $5.41 billion. These figures signalled greater confidence in Nigeria’s economic stability.

Despite a 42.3% drop in Foreign Direct Investment (FDI), which totalled $1.08 billion, Sidi-Ali stressed that the overall financial account still posted significant gains.

The CBN’s external reserves rose by $6.0 billion to $40.19 billion by the end of 2024, strengthening Nigeria’s external buffer.

Notably, the country’s data integrity saw substantial improvements, with net errors and omissions narrowing by 79.5% to negative $5.10 billion, down from $24.90 billion in 2023.

Sidi-Ali highlighted that the BOP surplus underscored the success of Nigeria’s ongoing reform agenda. Key measures contributing to this achievement included the liberalisation and unification of the foreign exchange market, disciplined monetary policies to control inflation, and coordinated fiscal and monetary actions to enhance competitiveness and investor sentiment.

CBN Governor Yemi Cardoso called the turnaround in the country’s external finances a testament to effective policy implementation and Nigeria’s commitment to macroeconomic stability.

He described the surplus as a key milestone for Nigeria’s economy, benefiting investors, businesses, and ordinary Nigerians alike.

This BOP surplus for 2024 represents a clear signal of Nigeria’s strengthened financial position, offering a positive outlook for the country’s economic future.