Reforms: Nigeria’s external reserves increased by $6.0 billion, reaching $40.19 billion in 2024

REFORMS: The Central Bank of Nigeria (CBN) has announced a balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year, a significant reversal from a deficit of $3.34 billion in 2023 and $3.32 billion in 2022.

The Acting Director of Corporate Communications, Sidi-Ali Hakama, shared this information in a statement released on Wednesday.

She explained that the improvement is a result of comprehensive macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

Both the current and capital accounts reported a surplus of $17.22 billion in 2024, supported by a goods trade surplus of $13.17 billion.

Petroleum imports dropped by 23.2 percent to $14.06 billion, while non-oil imports fell by 12.6 percent to $25.74 billion. On the export front, gas exports rose by 48.3 percent to $8.66 billion, and non-oil exports increased by 24.6 percent to $7.46 billion.

Remittance inflows remained strong, with personal remittances rising by 8.9 percent to $20.93 billion. International Money Transfer Operator (IMTO) inflows surged by 43.5 percent to $4.73 billion, up from $3.30 billion in 2023, reflecting greater engagement from the Nigerian diaspora. Official development assistance also saw a 6.2 percent increase, rising to $3.37 billion. Nigeria recorded a net acquisition of financial assets totalling $12.12 billion.

Portfolio investment inflows more than doubled, rising by 106.5 percent to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, demonstrating stronger confidence in the stability of the domestic economy. Although foreign direct investment dropped by 42.3 percent to $1.08 billion, the overall financial account showed notable improvements.

The country’s external reserves increased by $6.0 billion, reaching $40.19 billion by the end of 2024, strengthening its external buffer.

Significant Improvement in Data Integrity Notably, net errors and omissions reduced substantially by 79.5 percent, standing at negative $5.10 billion in 2024, down from $24.90 billion in 2023. This marks a considerable advancement in data accuracy, transparency, and reporting integrity. The 2024 BOP surplus underscores the success of Nigeria’s ongoing reform agenda.

The liberalisation and unification of the foreign exchange market, a disciplined monetary policy aimed at controlling inflation and stabilising the naira, and coordinated fiscal and monetary measures have all played a role in enhancing competitiveness and boosting investor sentiment.

“The positive turnaround in our external finances is proof of effective policy implementation and our steadfast commitment to macroeconomic stability,” Governor of the Central Bank of Nigeria said. “This surplus represents a significant step forward for Nigeria’s economy, benefiting investors, businesses, and ordinary Nigerians alike.”