The Central Bank of Nigeria (CBN) has announced a substantial economic recovery for Nigeria, reporting a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 fiscal year. This marks a significant shift from the previous two years, which saw deficits of $3.34 billion in 2023 and $3.32 billion in 2022, according to a statement released by the CBN’s Director of Corporate Communications Department, Mrs. Hakama Sidi-Ali.
Mrs. Sidi-Ali attributed this positive development to the successful implementation of wide-ranging macroeconomic reforms, a notable improvement in trade performance, and a resurgence of investor confidence in the Nigerian economy. She highlighted that the current and capital accounts together recorded a surplus of $17.22 billion in 2024, primarily driven by a robust goods trade surplus of $13.17 billion.
A closer look at the trade figures reveals a 23.2% decline in petroleum imports to $14.06 billion and a 12.6% decrease in non-oil imports to $25.74 billion. On the export front, gas exports saw a significant surge of 48.3%, reaching $8.66 billion, while non-oil exports also experienced substantial growth of 24.6%, totaling $7.46 billion. Furthermore, remittance inflows remained strong, with personal remittances increasing by 8.9% to $20.93 billion, and inflows from International Money Transfer Operators jumped by an impressive 43.5% to $4.73 billion. Official development assistance also saw a positive uptick of 6.2%, reaching $3.37 billion.
The CBN also reported a net acquisition of financial assets totaling $12.12 billion. Notably, portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating increased trust in the stability of the domestic economy. While Foreign Direct Investments (FDIs) saw a decrease of 42.3% to $1.08 billion, the overall financial account still showed significant gains. The nation’s external reserves also received a boost, increasing by $6.0 billion to $40.19 billion by the end of 2024.
