CBN says Nigeria now on economic resurgence with $6.83bn balance of payments surplus
The Central Bank of Nigeria (CBN) says Nigeria is now in economic resurgence mode as it announced a Balance of Payments (BOP) surplus of 6.83 billion dollars for the 2024 financial year.
According to a statement issued by Hakama Sidi-Ali, CBN’s Director, Corporate Communications Department, this marks a decisive turnaround from deficits of 3.34 billion dollars in 2023 and 3.32 billion dollars in 2022.
Sidi-Ali said that the improvement reflected the impact of wide-ranging acroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
“The current and capital account recorded a surplus of 17.22 billion dollars in 2024,
underpinned by a goods trade surplus of 13.17 billion dollars.
“Petroleum imports declined by 23.2 per cent to 14.06 billion dollars, while non-oil imports dropped by 12.6 per cent to 25.74 billion dollars.
“On the export side, gas exports rose by 48.3 per cent to 8.66 billion dollars, and non-oil exports increased by 24.6 per cent to 7.46 billion dollars, ” she said.
She said that remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to 20.93 billion dollars.
Sidi-Ali said that International Money Transfer Operator inflows surged by 43.5 per cent to 4.73 billion dollars, up from 3.30 billion dollars in 2023, reflecting stronger engagement from the Nigerian diaspora.
She said that official development assistance also rose by 6.2 per cent to 3.37 billion dollars.
“Nigeria recorded a net acquisition of financial assets totalling 12.12 billion dollars
“Portfolio investment inflows more than doubled, increasing by 106.5 per cent to 13.35 billion dollars, while resident foreign currency holdings grew by 5.41 billion, indicating stronger confidence in domestic economic stability,” she said.
The director said that, although Foreign Direct Investments (FDIs) dropped by 42.3 per cent to
1.08 billion dollars, the overall financial account posted notable gains.
She said that the country’s external reserves increased by 6.0 billion dollars to 40.19 billion dollars by year-end 2024, bolstering its external buffer.
“Marked Improvement in data integrity notably, net errors and omissions narrowed significantly by 79.5 per cent to negative 5.10 billion dollars in 2024, down from 24.90 billion dollars in 2023.
“This reflects substantial improvements in data availability and capture, representing a major advance in data accuracy,transparency, and overall reporting integrity,” she said.
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She said that the 2024 Balance of Payments surplus highlighted the effectiveness of Nigeria’s ongoing reform agenda.
According to her, the liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the Naira, and coordinated fiscal and monetary measures have all contributed to enhanced
competitiveness and investor sentiment.
Meanwhile, the CBN Governor, Yemi Cardoso, said that the positive turnaround in the country’s external finances was evidence of effective policy implementation and unwavering commitment to macroeconomic stability.
According to Cardoso, this surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.
