When President Bola Ahmed Tinubu took office on May 29, 2023, he inherited an economy grappling with significant challenges. However, recent figures from the Central Bank of Nigeria (CBN) suggest the country is on the path to recovery.
In a statement titled “Nigeria Posts $6.83 Billion Balance of Payments Surplus in 2024, Signaling Economic Resurgence,” the CBN announced that Nigeria achieved a Balance of Payments (BOP) surplus of $6.83 billion in 2024, a remarkable turnaround from the deficits of $3.34 billion and $3.32 billion in 2023 and 2022, respectively.
A BOP surplus occurs when a country’s exports exceed its imports, a key indicator of economic strength. The CBN attributed this positive shift to broad macroeconomic reforms, improved trade performance, and renewed investor confidence in the Nigerian economy.
Macroeconomic Reforms Drive Positive Results
During the review period, the country recorded a $17.22 billion surplus in both current and capital accounts, driven by a goods trade surplus of $13.17 billion. Petroleum imports saw a 23.2% decline to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion.
Exports also performed well, with gas exports climbing by 48.3% to $8.66 billion and non-oil exports increasing by 24.6% to $7.46 billion. Remittance inflows remained robust, rising by 8.9% to $20.93 billion, while International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion.
Strengthening Financial Reserves and Investments
Additionally, official development assistance grew by 6.2% to $3.37 billion. Nigeria’s financial accounts saw substantial gains, with net financial asset acquisitions reaching $12.12 billion and portfolio investment inflows more than doubling, increasing by 106.5% to $13.35 billion.
Although Foreign Direct Investment (FDI) dropped by 42.3% to $1.08 billion, the overall financial picture remained strong, bolstered by a $6 billion increase in external reserves, which stood at $40.19 billion by the end of 2024.
Improved Data Accuracy Reflects Transparency Efforts
Notably, Nigeria saw significant improvements in data accuracy, with net errors and omissions shrinking by 79.5%, from $24.90 billion in 2023 to negative $5.10 billion in 2024. This reflects a stronger commitment to transparency and better reporting standards.
CBN Governor Olayemi Cardoso commented on the achievement, stating, “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 successful liberalization and unification of the foreign exchange market, along with a disciplined monetary policy approach to managing inflation and stabilizing the naira, played a key role in improving Nigeria’s economic outlook. This surplus is seen as a clear reflection of the government’s ongoing economic reform efforts.
