The Nigerian economic system is displaying renewed indicators of resilience, because the Central Bank of Nigeria (CBN) has introduced a Stability of Funds (BOP) surplus of $6.83 billion for the 2024 fiscal 12 months—a big turnaround from deficits recorded within the earlier two years.
This improvement, disclosed in an announcement issued by the apex {bank} on Wednesday, marks a departure from the $3.34 billion and $3.32 billion deficits posted in 2023 and 2022 respectively.
In accordance with the CBN, the development displays the cumulative impact of far-reaching macroeconomic reforms, stronger commerce fundamentals, and rising investor confidence in Nigeria’s fiscal and financial coverage course.
Commerce Surplus and Decline in Imports
The present and capital accounts registered a mixed surplus of $17.22 billion in 2024, largely pushed by a strong items commerce surplus of $13.17 billion. Petroleum imports dropped by 23.2% to $14.06 billion, whereas non-oil imports noticed a 12.6% decline, totaling $25.74 billion for the 12 months.
On the export entrance, Nigeria recorded vital positive factors, with gasoline exports growing by 48.3% to $8.66 billion, and non-oil exports rising by 24.6% to $7.46 billion. The info displays a strategic shift towards export diversification and import substitution.
Remittances and Investments Gas Capital Inflows
Private remittances remained robust, climbing by 8.9% to $20.93 billion. Inflows via Worldwide Cash Switch Operators (IMTOs) surged by 43.5% to $4.73 billion, in comparison with $3.30 billion in 2023—signaling deeper engagement by the Nigerian diaspora.
Official improvement help additionally rose modestly by 6.2% to $3.37 billion.
Whereas overseas direct funding (FDI) dipped by 42.3% to $1.08 billion, the {financial} account nonetheless posted constructive momentum, buoyed by a 106.5% bounce in portfolio funding inflows to $13.35 billion. Resident overseas forex holdings additionally elevated by $5.41 billion, indicating stronger religion within the native economic system.
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Exterior Reserves and Knowledge Integrity Enhance
Nigeria’s exterior reserves rose by $6.0 billion to achieve $40.19 billion by the top of 2024, reinforcing the nation’s exterior buffer and creditworthiness.
In the meantime, internet errors and omissions—a key metric of statistical discrepancies—narrowed dramatically by 79.5% to adverse $5.10 billion, down from $24.90 billion in 2023. The CBN attributed this to improved knowledge assortment and reporting practices, marking a step ahead in transparency and accountability.
Reforms Driving Outcomes
The CBN credited the overseas trade market liberalisation, disciplined financial coverage, and nearer fiscal-monetary coordination as key contributors to the turnaround.
“The constructive turnaround in our exterior funds is proof of efficient coverage implementation and our unwavering dedication to macroeconomic stability,” stated the CBN Governor. “This surplus marks an vital step ahead for Nigeria’s economic system, benefiting buyers, companies, and on a regular basis Nigerians alike.”
Economists say the robust BOP efficiency may assist stabilise the naira additional, improve investor sentiment, and lay a strong basis for broader {economic} restoration heading into 2025.
