Nigeria recorded a $6.83 billion balance of payments surplus in 2024, the first positive external account in three years.
The Central Bank of Nigeria (CBN) attributed the improvement to a series of policy reforms like the unification of the foreign exchange market, the removal of fuel subsidies and increased domestic crude refining capacity.
According to the CBN, the surplus represents a reversal from the $3.34 billion deficit recorded in 2023.
The apex bank stated that the outcome reflects coordinated fiscal and monetary policies aimed at restoring external stability and supporting investor confidence.
A major contributor to the surplus was a $17.2 billion gain in the capital and financial account. This was driven by rising non-oil exports, increased gas sales and reduced petroleum imports following improvements in local refining.
The Dangote Refinery and Port Harcourt plant contributed to the decline in fuel imports which dropped by 23 percent year-on-year.
Remittance inflows also supported the surplus, rising by 8.9 percent to $20.9 billion while inflows through International Money Transfer Operators (IMTOs) increased by 43.5 percent to $4.73 billion.
The CBN also reported that portfolio investment inflows more than doubled to $13.35 billion while resident foreign currency holdings rose by $5.41 billion. However, foreign direct investment declined by 42 percent to $1.08 billion during the same period.
Despite the fall in FDI, external reserves increased by $6 billion to close at $40.2 billion at the end of 2024. This growth in reserves provides additional buffer for exchange rate management and supports market confidence.
The central bank maintained that its disciplined monetary policy stance helped contain inflation and reduce volatility in the exchange rate.
It emphasized that the liberalisation of the foreign exchange market and subsidy reform were essential to improving Nigeria’s external position.
CBN Governor Olayemi Cardoso described the surplus as an important milestone for the economy, stating that the outcome benefits investors, businesses and the broader population.
