IMF Reports Nigeria’s Current Account Surplus Reaches $1.432 Billion in 2024

By Joke Kujenya

NIGERIA’S ECONOMIC performance in 2024 shows significant improvement, as the International Monetary Fund (IMF) reports a current account surplus of $1.432 billion.

This figure, detailed in the IMF’s ‘World Economic Outlook Database,’ surpasses the $1.21 billion surplus recorded in 2023, marking a positive trend in the nation’s financial health.

According to the IMF report, Nigeria’s gross national savings increased to 26.32 percent of Gross Domestic Product (GDP) in 2024, up from 24.61 percent in 2023.

It adds that total investment also saw a rise, reaching 25.75 percent of GDP compared to 24.28 percent the previous year, stating that these metrics highlight a growing economic foundation, driven by increased savings and investments.

The current account balance is a critical indicator of a country’s economic status, encompassing the trade balance, net income, direct transfers, and asset income, the report indicates, and adds that a surplus in this account indicates a net lending position, suggesting that Nigeria is lending more to the rest of the world than it is borrowing.

On Wednesday, the IMF report was references as having attributed the improvement to the nation’s growing gross national savings and investment, saying this is a positive economic route which comes despite the challenging backdrop of subsidy removals implemented by President Bola Tinubu in May 2023.

as reported by the National Bureau of Statistics (NBS), the removal of subsidies has led to sharp increases in electricity tariffs, food prices, transportation costs, and housing rents, pushing the inflation rate to 33.69 percent.

These economic strains have triggered widespread discontent, culminating in a nationwide industrial strike initiated by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) on Monday as they are demanding a significant increase in the minimum wage to N494,000 monthly, far above the current N30,000.

The Federal Government, showing a willingness to negotiate, has indicated a potential compromise for a wage higher than the initially proposed N60,000 which was largely rejected by the labour unions, saying that the Nigerian workforce deserve better treatment and pays for their massive contributions to national growth.

On the IMF data, the Presidency notes that it provides a glimmer of hope, suggesting that the nation is on a path to greater financial stability and growth as the increase in savings and investments signals a robust economic foundation that could support future development and prosperity.

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