ABUJA, Nigeria – Nigeria has recorded its first balance of payments (BOP) surplus in three years, posting a surplus of $6.83 billion in 2024, according to the Central Bank of Nigeria (CBN). This marks a significant turnaround from a deficit of $3.34 billion in 2023.
The CBN attributed the positive shift to key economic reforms, including the removal of fuel subsidies, the unification of the foreign exchange market, increased oil and gas output, and the adoption of a free-floating naira. These policies, combined with tight monetary policies and coordinated fiscal efforts, have helped stabilize the naira and control inflation.
A $17.2 billion surplus in the current and capital accounts played a major role in the outcome, largely fueled by a rise in gas and non-oil exports and a decline in imports. Petroleum imports dropped by 23% due to enhanced local refining capacity, following the operationalization of the Dangote refinery and another facility in Port Harcourt.
Diaspora remittances also played a crucial role in supporting external finances. Personal remittances rose 8.9% to $20.9 billion, while inflows from international money transfer operators jumped 43.5% to $4.73 billion, reflecting greater participation from the Nigerian diaspora. With nearly 20 million Nigerians living abroad, remittances remain a vital economic pillar for the country.
While foreign direct investment declined by 42% to $1.08 billion, portfolio investments surged, more than doubling to $13.35 billion. Foreign exchange reserves also grew by $6 billion, reaching $40.2 billion by year-end. Additionally, resident foreign currency holdings increased by $5.41 billion.
CBN Governor Olayemi Cardoso described the surplus as a key milestone for Nigeria’s economy, signaling renewed investor confidence and broader macroeconomic stability. The development is being closely watched by international investors and economists, as it could signal a positive trend for Nigeria’s economic outlook.
