Nigeria reports $6.83bn balance of payments surplus in 2024

Nigeria has recorded a significant balance of payments (BOP) surplus of $6.83 billion in 2024, marking a sharp recovery from consecutive deficits in the previous two years.

The latest data, released by the Central Bank of Nigeria (CBN), highlights a broad resurgence in the country’s external finances, driven by robust trade flows, macroeconomic reforms, and renewed investor confidence.

The BOP, which tracks the country’s financial transactions with the rest of the world, shifted dramatically from a deficit of $1.21 billion in 2023 to a surplus of $6.83 billion in 2024.

This positive outcome was largely supported by improvements in both the current and capital accounts, with the combined surplus reaching $17.22 billion in 2024, up from just $2.59 billion in 2023.

A substantial portion of the gains came from the country’s trade sector. Nigeria’s goods trade posted a surplus of $13.17 billion, fueled by a 48.3% increase in gas exports and a 24.6% rise in non-oil exports.

On the imports side, petroleum imports decreased by 23.2%, and non-oil imports fell by 12.6%, reflecting the effects of foreign exchange liberalization, reduced consumption of imported goods, and efforts to boost local production.

Additionally, diaspora remittances played a significant role in bolstering Nigeria’s external position.

Personal transfers into the country rose by 8.9% to $20.93 billion, while inflows through International Money Transfer Operators (IMTOs) surged by 43.5% to $4.73 billion, highlighting growing confidence in official financial channels. Nigeria also received $3.37 billion in official development assistance, marking a 6.2% year-on-year increase.

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The improvement in Nigeria’s external sector was mirrored by a rise in its external reserves, which climbed by $6 billion to close the year at $40.19 billion—its highest level in nearly three years.

This growth in reserves was supported by the BOP surplus as well as increased foreign exchange inflows from foreign portfolio investments and development finance institutions.

The country also saw a significant reduction in net errors and omissions, dropping by 79.5%, which the CBN attributed to improved data quality, reporting standards, and inter-agency coordination.

The turnaround in Nigeria’s external finances is largely attributed to the government’s ongoing macroeconomic reforms, which have been implemented since 2023.

These reforms include the liberalization and unification of the foreign exchange market, the removal of fuel subsidies, and a tightening of monetary policy to combat inflation and stabilize the naira.

CBN Governor Olayemi Cardoso emphasized the importance of these reforms, 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.”

Looking ahead, the BOP surplus is expected to support the stability of the naira, provided that the momentum of the reforms continues and global conditions remain favorable.

However, challenges such as the recent depreciation of the naira, which has remained above N1,600 despite a $400 million intervention by the CBN, suggest that pressures in the foreign exchange market persist.

Furthermore, the ongoing global trade tensions, particularly with the United States, may introduce new complexities.

On April 8, 2025, the U.S. Trade Representative criticized Nigeria for imposing import bans on 25 product categories, including beef, poultry, and fruit juices, labeling these restrictions as significant trade barriers.

These disputes could affect Nigeria’s trade relations and economic outlook, underscoring the importance of diplomatic engagement and policy adjustments.

While the 2024 BOP surplus offers strong evidence of macroeconomic recovery, addressing currency volatility and international trade relations will be critical in sustaining and building upon these gains in the coming years.