Data from the International Monetary Fund’s World Economic Outlook reveals an increase in the country’s current account balance, reaching $1.432 billion in 2024. This positive trend indicates a growing economy with rising investment and savings, even amidst concerns over eroded investor confidence.
The rise in Nigeria’s current account balance is accompanied by a significant rise in the trade balance, reflecting a surplus of $1.21 billion in 2023. This balance encompasses net trade in goods, services, and transfers with the rest of the world, indicating the country’s overall economic performance on the global stage.
Notably, Nigeria’s gross national savings have increased to 26.32 percent of Gross Domestic Product (GDP) in 2024, alongside a rise in total investment to 25.75 percent of GDP. However, challenges persist, including a scarcity of dollar liquidity in the economy and the exit of multinational corporations. Despite these hurdles, Nigeria’s current account surplus signifies potential for economic growth and stability in the region. Professor Ibrahim Bakare emphasized the importance of maintaining competitiveness in international markets and managing currency appreciation resulting from increased demand for Nigerian goods and services.
Source: Business Day