Our Correspondent
The Central Bank of Nigeria (CBN) has announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year.
This marks a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The announcement was contained in a statement by Acting Director, Corporate Communications, Mrs Sidi-Ali, Hakama.
It says, “This improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.
Stronger Trade and External Account Performance
“The current and capital account recorded a surplus of $17.22 billion in 2024, underpinned by a goods trade surplus of $13.17 billion.
The statement also notes that petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion.
“On the export side, gas exports rose by 48.3% to $8.66 billion, and non-oil exports increased by 24.6% to $7.46 billion.
“Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93 billion.
International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora.
According to the statement, official development assistance also rose by 6.2% to $3.37 billion.
“Improved Financial Account and Reserve Position Nigeria recorded a net acquisition of financial assets totalling $12.12 billion,” it further reveals.
“Portfolio investment inflows increased by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability.
It notes that while foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains.
“The country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, bolstering its external buffer.
Marked Improvement in Data Integrity
According to the statement, net errors and omissions narrowed significantly by 79.5% to negative $5.10 billion in 2024, from $24.90 billion in 2023
This, it notes, reflects substantial improvements in data availability and capture and represents a major advance in data accuracy, transparency, and overall reporting integrity.
“Outlook and Policy Impact The 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform agenda”.
The statement adds that the liberalization and unification of the foreign exchange market have all contributed to enhanced competitiveness and investor sentiment.
“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.”
