Nigeria recorded a stability of cost (BOP) surplus of $6.83 billion in 2024, marking a pointy reversal from consecutive deficits posted within the prior two years.
The newest figures, launched by the Central Bank of Nigeria (CBN), sign a broad-based resurgence within the nation’s exterior funds, aided by wide-ranging macroeconomic reforms, stronger commerce flows, and a renewed sense of investor confidence.
The BOP, which measures the nation’s monetary transactions with the remainder of the world, swung from a deficit of $1.21 billion in 2023 to a $6.83 billion surplus in 2024, underpinned by a pointy enchancment within the present and capital account positions.
This comes months after Nigeria reported a $5.14 billion present account surplus within the first 9 months of 2023, which analysts on the time mentioned might present help for Nigeria’s exterior reserves and the change fee.
That backstory, detailed in a earlier Nairametrics article, foreshadowed the broader turnaround now mirrored within the full-year BOP information for 2024.
Commerce features drive restoration
In response to the CBN’s information, Nigeria’s present and capital account posted a mixed surplus of $17.22 billion in 2024, up considerably from $2.59 billion in 2023.
- The majority of the features got here from commerce, the place a rebound in exports and a contraction in imports boosted the nation’s commerce stability.
- Items commerce posted a surplus of $13.17 billion in 2024, aided by a 48.3% surge in gasoline exports and a 24.6% rise in non-oil exports.
- On the import facet, petroleum imports fell 23.2%, whereas non-oil imports declined by 12.6%, each reflecting the mixed impact of FX liberalisation, decreased consumption of imported items, and efforts to enhance native manufacturing.
Diaspora remittances additionally performed a pivotal function in boosting Nigeria’s exterior place.
- Private transfers into the nation rose by 8.9% to $20.93 billion, whereas inflows via Worldwide Cash Switch Operators (IMTOs) surged by 43.5% to $4.73 billion—reflecting rising confidence in official channels.
- Moreover, Nigeria acquired $3.37 billion in official growth help, a 6.2% improve year-on-year, suggesting stronger international help for the economic system amidst ongoing reforms.
Exterior reserves strengthen
The rebound within the nation’s exterior sector was additionally seen in its reserve place. Nigeria’s exterior reserves climbed by $6 billion to shut the yr at $40.19 billion—its highest degree in practically three years.
- The reserve build-up was aided not solely by the BOP surplus but in addition by improved FX inflows from international portfolio investments and growth finance establishments.
- Web errors and omissions—a proxy for untracked monetary flows—dropped by 79.5%, which the CBN attributed to enhancements in information high quality, reporting requirements, and inter-agency coordination on monetary statistics.
Reform agenda credited for features
A lot of the credit score for the turnaround has been directed on the authorities’s reform efforts.
Since 2023, Nigeria has launched into a collection of macroeconomic reforms together with the liberalisation and unification of the international change market, the removing of gas subsidies, and the tightening of financial coverage to tame inflation and stabilise the naira.
In his remarks, the CBN Governor, Olayemi Cardoso, mentioned:
“The optimistic turnaround in our exterior funds is proof of efficient coverage implementation and our unwavering dedication to macroeconomic stability. This surplus marks an essential step ahead for Nigeria’s economic system, benefiting traders, companies, and on a regular basis Nigerians alike.”
A balance-of-payment surplus is anticipated to help Nigeria’s change fee over the approaching quarters, offered reform momentum is maintained and international situations stay beneficial.
What subsequent?
Wanting forward, the sustainability of the BOP surplus will rely upon international oil costs, the tempo of non-oil export development, and whether or not Nigeria can proceed to draw international capital.
Whereas the reforms have began yielding optimistic outcomes, additional structural modifications could also be wanted to completely unlock Nigeria’s potential.
Nevertheless, latest developments current challenges to this optimistic trajectory. The naira has skilled important depreciation, closing above N1,600 all week lengthy, regardless of the Central Bank of Nigeria’s over $400 million intervention geared toward stabilizing the foreign money .
This decline highlights the persistent pressures within the international change market, suggesting that the stability of funds surplus has but to translate into constant naira stability.
Moreover, escalating international commerce tensions, launched by Donald Trump, have launched new complexities.
- On April 8, 2025, america Commerce Consultant criticized Nigeria for imposing import bans on 25 product classes, together with beef, pork, poultry, fruit juices, medicaments, and spirits.
- These restrictions have been labeled as important commerce obstacles, probably limiting U.S. market entry and decreasing export alternatives .
- Such worldwide disputes might impression Nigeria’s commerce relations and financial outlook, emphasizing the necessity for diplomatic engagement and coverage changes to navigate the evolving international commerce atmosphere.
The 2024 stability of funds information gives a powerful indication that macroeconomic stability is returning after years of turbulence. Nevertheless, addressing the challenges posed by foreign money depreciation and worldwide commerce relations will likely be essential to sustaining and constructing upon these features.
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