Nigeria achieved a major economic milestone in 2024 with a $6.83bn balance of payments surplus, marking a significant turnaround from consecutive deficits in previous years, according to a statement released by the Central Bank of Nigeria (CBN) and reported by Reuters.
This figure compares favourably to deficits of $3.34bn in 2023 and $3.32bn in 2022, suggesting that recent economic reforms, improved trade performance, and rising investor confidence are having a tangible impact.
Trade reforms and remittances lead the way
The CBN noted that both current and capital accounts showed strong performance, posting a combined surplus of $17.22bn in 2024. A key contributor was a goods trade surplus of $13.17bn, driven by stronger exports and more efficient import management.
Remittance inflows also provided vital support to the economy, rising by 8.9 percent to $20.93bn for the year. These inflows continue to play a stabilising role for Nigeria’s foreign exchange position and household spending power.
According to Reuters, these improvements reflect the impact of recent government policy measures aimed at liberalising the foreign exchange market and boosting non-oil exports, alongside efforts to attract foreign direct investment.
Investor confidence returns amid fiscal shift
Economists see Nigeria’s return to a surplus as a sign of renewed investor interest, particularly as the country seeks to diversify away from its historical reliance on oil. Ongoing macroeconomic reforms, including exchange rate adjustments and subsidy reforms, have been credited with restoring a degree of credibility to Nigeria’s economic outlook.
Still, analysts caution that sustained progress will depend on continued structural reform and fiscal discipline. While the 2024 surplus is encouraging, the economy faces ongoing challenges, including inflationary pressure, currency volatility, and infrastructure deficits.
The balance of payments surplus is a positive signal for Nigeria’s external resilience, giving the CBN more room to stabilise the naira and build up foreign reserves. (Africabriefing)
