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Nigeria’s Current Account Surplus Rises to $7.54bn

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Nigeria’s current account surplus rose sharply to $7.54 billion in the second quarter of 2026, representing a 67.9 per cent increase from the $4.49 billion recorded in the first quarter, as stronger export earnings and higher remittance inflows strengthened the country’s external position.

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The latest figure was also 45.8 per cent higher than the $5.17 billion surplus recorded in the corresponding period of 2025, according to provisional Balance of Payments statistics released by the Central Bank of Nigeria.

The improvement was driven principally by a wider surplus in the goods account, which more than offset increased net outflows from the services and primary income accounts.

The goods account recorded a surplus of $10.12 billion in Q2, up from $5.96 billion in Q1 and $4.85 billion in the same quarter of 2025.

The stronger position reflected higher export receipts across several major categories. Total exports rose to $20.08 billion in Q2 from $15.56 billion in the preceding quarter.

Crude oil export receipts increased by 15.78 per cent to $9.39 billion, while natural gas exports climbed by 40.15 per cent to $3.63 billion.

Exports of refined petroleum products recorded an even stronger increase, rising by 66.24 per cent to $3.94 billion. Non-oil export receipts also increased by 25.30 per cent to $3.12 billion during the quarter.

The goods account also benefited from a significant reduction in crude oil imports. The value of crude oil imports fell to $580 million in Q2 from $1.39 billion in Q1, further improving the country’s trade position.

Remittances provided another source of support for the Nigeria current account surplus. The secondary income account increased to a surplus of $6.30 billion, compared with $5.47 billion in the first quarter.

Personal transfers, including remittances from Nigerians living abroad, rose by 9.81 per cent to $5.82 billion during the quarter.

However, the improvement in the current account came despite higher outflows from some other components of the external accounts.

Net services outflows increased to $4.67 billion from $3.71 billion in Q1, reflecting higher payments for transport, travel, insurance, business services and other government services.

The primary income account also recorded a larger deficit, with its debit balance rising to $4.20 billion from $3.23 billion. The increase was attributed largely to higher dividend and interest payments to non-resident investors.

The financial account also improved during the quarter, moving from a net borrowing position of $2.03 billion in Q1 to a net lending position of $1.74 billion in Q2.

Portfolio investment liabilities attracted inflows of $7.09 billion, compared with $6.03 billion in Q1, while foreign direct investment inflows increased to $1.15 billion from $1.03 billion.

Nigeria’s overall balance of payments also recorded a $3.51 billion surplus in Q2 2026, according to the CBN.

The country’s external reserves rose from $48.35 billion at the end of March to $51.39 billion at the end of June, providing a larger external buffer during the quarter.

The latest figures point to an improvement in Nigeria’s external position during the second quarter, with stronger export earnings, reduced crude oil imports and increased remittance inflows contributing to the expansion of the current account surplus.

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Grey CEO Urges Africa to Ditch Dollar for Trade

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Grey CEO Idorenyin Obong says intra-African trade payments should bypass the dollar, as the fintech expands direct currency conversion routes

African businesses should be able to pay suppliers across the continent without routing transactions through the United States dollar, Grey co-founder and Chief Executive Officer, Idorenyin Obong, has said, as the cross-border payments company expands its currency conversion infrastructure.

Also read: CAF Restores AFCON to Every Two Years After Reversing Four-Year Plan

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Obong made the remarks on Thursday, October 29, on the sidelines of Moonshot by TechCabal 2026, a two-day technology conference held at the National Theatre in Lagos.

He said reliance on intermediary currencies, particularly the dollar, adds complexity to transactions between African countries and can worsen existing foreign exchange liquidity challenges.

According to him, Grey has developed direct currency conversion routes that allow payments between selected African currencies without requiring businesses to convert their funds into dollars first.

“Most times, if you’re trading within Africa, there’s always some form of intermediary currency,” Obong said.

“We’ve built out these currency pairs, these exotic currency pairs, such that you never have to go in between to the USD.”

The issue is significant for businesses operating across African markets, where differences in currency availability, banking arrangements and payment infrastructure can make cross-border transactions expensive or unpredictable.

For example, a Nigerian company paying a supplier in Kenya may traditionally have to convert naira into dollars before exchanging the dollars for Kenyan shillings.

Each conversion introduces another stage in the transaction, potentially increasing costs and exposing the payment to additional delays.

Grey says its direct currency routes are designed to simplify that process by connecting supported currencies more efficiently.

The company said its payment infrastructure currently enables customers in Nigeria, Kenya and Ghana to send and receive money, with liquidity arrangements supporting transactions in multiple currencies.

It also said payments can be settled in real time across several supported currencies.

However, the availability of direct routes does not mean that all African currencies can be exchanged freely or that every transaction will avoid dollar intermediation.

Currency coverage, liquidity and regulatory requirements remain important considerations in cross-border payments.

Obong identified foreign exchange liquidity and payment reliability as two of the biggest difficulties confronting businesses that trade internationally.

He said uncertainty over when suppliers will receive their money can disrupt procurement schedules and weaken commercial relationships.

Grey has therefore invested in infrastructure intended to improve the predictability of international payouts, including providing customers with estimated delivery times.

“We spent the last six years building the infrastructure to ensure that we’re delivering at the last mile at 99.99% to our customers,” Obong said.

He also disclosed that Grey had processed more than 40 million transactions and nearly $5bn in payments since the company began operations in 2020.

The company has expanded beyond individual currency exchange services into business payments and international salary management.

Its Grey Business platform, designed for startups and small businesses, has processed nearly $100m since launching in February, according to the company.

Grey previously reported that the business platform processed $61.4m in its first four months, with demand partly driven by stablecoin-based payments.

The fintech has also extended its payout services to China, allowing businesses to pay suppliers in Chinese yuan.

The expansion reflects its effort to serve companies whose international supply chains extend beyond African markets.

Grey’s development has followed changes in customer demand since its launch in 2020.

Obong said the company initially operated as a currency exchange service but discovered that many customers were primarily using the platform to receive salaries earned abroad.

“Most of our customers were using Grey to receive their foreign salary. And so we decided to build what I would call simply a salary account for these customers,” he said.

That shift led to Paycheck, a product that enables professionals earning in dollars, pounds and euros to receive and manage their salaries.

The service also integrates with Pouch, Grey’s savings feature, which allows users to set aside money for goals such as education, travel and major purchases.

The company’s expansion comes amid wider efforts to improve financial connectivity across African markets.

The African Continental Free Trade Area (AfCFTA), which seeks to create a more integrated continental market, has made trade facilitation, payment systems and currency-related barriers important parts of the conversation about intra-African commerce.

One initiative in this area is the Pan-African Payment and Settlement System (PAPSS), developed to facilitate cross-border payments in local African currencies.

The system is intended to reduce reliance on third-party currencies and make intra-African trade payments more efficient.

Grey’s direct currency routes address a related challenge through its own commercial payment infrastructure, although the company’s services and PAPSS are separate initiatives with different operating models.

Obong’s comments also came as the company faced questions about customer experiences, including difficulties accessing foreign currency accounts and obtaining support.

Grey said it provides round-the-clock digital assistance and operates a physical office, while maintaining that online support is more effective for directing customer complaints to its distributed teams.

Grey was the headline sponsor of Moonshot by TechCabal 2026, held on October 28 and 29 in Lagos.

The conference brought together technology companies, investors, entrepreneurs and other industry participants to discuss innovation, investment and business opportunities across Africa.

For Grey, the ambition is to make international payments less complicated for businesses and individuals.

Also read: CAF Restores AFCON to Every Two Years After Reversing Four-Year Plan

Its push towards direct currency conversion reflects a broader question facing African commerce: how much more efficiently could companies trade across the continent if paying a supplier did not routinely require passing through the dollar?

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NANYD Faults Miners’ Death Probe, Alleges NSCDC Witch-Hunt

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NANYD questions the miners’ death probe report, alleging contradictions in its findings and recommendations against NSCDC leadership (more…)

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Top 10 Countries Offering Affordable Education Abroad

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Discover 10 affordable countries for international students, with estimated tuition fees, living costs and study opportunities abroad (more…)

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