••Economic Reforms Pay Off as Nation Turns Tide on Deficits with Strong Trade and Investment.
By Anastasia John E
Nigeria’s economy has staged a significant comeback, recording a substantial $6.83 billion Balance of Payments (BOP) surplus in 2024, a dramatic shift from deficits experienced in the preceding two years. This positive turnaround, highlighted in recent reports, underscores the impact of comprehensive macroeconomic reforms, a robust trade performance, and a resurgence in investor confidence.
The impressive BOP surplus was largely driven by a $17.22 billion surplus in the current and capital accounts, spearheaded by a $13.17 billion surplus in the trade of goods. Key contributing factors include a significant 23.2% drop in petroleum imports and a 12.6% decrease in non-oil imports. Simultaneously, Nigeria witnessed a remarkable 48.3% surge in gas exports and a strong 24.6% rise in non-oil exports.
Remittances also played a crucial role, with personal inflows increasing by 8.9% to $20.93 billion and International Money Transfer Operators (IMTO) transfers soaring by 43.5% to $4.73 billion. Official development assistance also saw a 6.2% uptick, reaching $3.37 billion, indicating stronger diaspora engagement and international support.
Furthermore, Nigeria’s external reserves experienced a healthy $6 billion increase, closing the year at $40.19 billion. Notably, net errors and omissions saw a substantial 79.5% decrease, signifying significant improvements in data quality and transparency.
The Central Bank of Nigeria (CBN) attributes this positive shift to the effectiveness of the ongoing reform agenda, including the liberalization and unification of the foreign exchange market, a disciplined monetary policy aimed at curbing inflation and stabilizing the naira, and well-coordinated fiscal and monetary measures.
CBN Governor, Olayemi Cardoso, stated, “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.”
