CBN Reports $3.73bn Current Account Surplus in Q1 2025, Boosted by Non-Oil Exports and Trade Gains

Nigeria recorded a current account surplus of $3.73 billion in Q1 2025, driven primarily by a sharp increase in non-oil exports and improved trade balances. According to the Central Bank of Nigeria’s (CBN) Balance of Payments report, this surplus was only slightly lower than the $3.80 billion recorded in the previous quarter but higher than the $3.69 billion posted in Q1 2024.

The goods account played a pivotal role, posting a surplus of $4.16 billion, compared to $2.62 billion in Q4 2024. This improvement was supported by a 9.79% rise in total exports to $13.91 billion, aided by increased shipments of crude oil and gas and a weaker naira, which enhanced the global competitiveness of Nigerian goods. Crude oil exports accounted for $8.59 billion, while non-oil and gas exports both stood at $2.66 billion. Imports fell to $9.75 billion, with declines seen in petroleum product and non-oil imports.

However, other parts of the current account were less favorable. The services account recorded a net outflow of $3.69 billion due to higher payments for travel and business services. The primary income account deficit widened by 13.48% to $2.02 billion, driven by increased interest payments to foreign investors. In contrast, the secondary income account, which includes remittances and aid, showed a smaller net inflow of $5.29 billion, down from $6.44 billion previously, with personal remittances dipping slightly to $4.93 billion.

The financial account recorded a lower balance of $7.58 billion, mainly due to a reversal in foreign portfolio investment (FPI), which turned into a net divestment of $5.03 billion. Direct investment inflows also declined to $0.25 billion. There were noticeable outflows in other investment assets and liabilities, and Nigerian investments abroad also registered moderate outflows across both portfolio and direct investment assets.

Despite the current account surplus, Nigeria’s overall balance of payments posted a deficit of $2.77 billion in Q1 2025, mainly due to the financial account shortfalls. This was accompanied by a decline in external reserves to $37.82 billion by the end of March 2025, from $40.19 billion at the end of December 2024, indicating persistent pressure on the country’s foreign exchange position.

Source: The Sun