By Joke Kujenya
CLOSING 2024 with a Balance of Payments (BOP) surplus of $6.83 billion, Nigeria records a dramatic reversal from consecutive deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The Central Bank of Nigeria (CBN) attributed this turnaround to a combination of bold macroeconomic reforms, stronger trade dynamics, and a resurgence in investor confidence—affirming the impact of the Renewed Hope Agenda.
The country’s current and capital accounts recorded a combined surplus of $17.22 billion. A $13.17 billion goods trade surplus led the way, supported by a significant reduction in import demand.
Petroleum imports fell by 23.2% to $14.06 billion, while non-oil imports declined 12.6% to $25.74 billion, the apex bank also notes.
Export performance strengthened markedly.
Gas exports soared by 48.3% to $8.66 billion, and non-oil exports rose 24.6% to $7.46 billion, reflecting rising global demand and continued efforts to diversify the country’s export base.
Remittances remained resilient. Personal inflows increased by 8.9% to $20.93 billion.
Transfers through International Money Transfer Operators (IMTOs) jumped by 43.5%, climbing to $4.73 billion from $3.30 billion a year earlier—signalling deeper engagement from the Nigerian diaspora.
Official development assistance also edged up, reaching $3.37 billion after a 6.2% year-on-year rise.
On the financial account side, net acquisition of financial assets hit $12.12 billion. Portfolio investment inflows more than doubled, rising by 106.5% to $13.35 billion.
Meanwhile, resident foreign currency holdings grew by $5.41 billion—another indicator of improving confidence in domestic economic stability.
Despite a 42.3% drop in foreign direct investment to $1.08 billion, the overall financial account remained in positive territory.
External reserves rose by $6.0 billion, closing 2024 at $40.19 billion. The increase has further solidified the country’s external buffers, providing greater resilience against global financial pressures.
Improvements in data quality were also evident. Net errors and omissions contracted by 79.5%, falling from $24.90 billion in 2023 to negative $5.10 billion in 2024.
The sharp drop reflects enhanced data capture, transparency, and reporting integrity—critical gains for economic planning and investor trust.
CBN officials described the surplus as a clear signal of reform dividends.
The liberalisation and unification of the foreign exchange market, disciplined monetary management, and coordinated policy execution helped stabilise the naira, ease inflationary pressure, and improve external competitiveness.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the Governor of the Central Bank of Nigeria, Olayemi Cardoso.
“This surplus also marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” he stressed.
