Nigeria Records $3.73bn Current Account Surplus in Q1 2025, Driven by Non-Oil Export Growth

Nigeria posted a current account surplus of $3.73 billion in Q1 2025, according to the Central Bank of Nigeria (CBN), driven largely by a strong rebound in non-oil exports and a surplus in the goods account. Although slightly below the $3.80 billion recorded in Q4 2024, the surplus marked a marginal improvement over the $3.69 billion from Q1 2024. A 30.39% increase in non-oil exports, alongside higher gas exports, bolstered Nigeria’s trade position during the period.

The goods account emerged as a key contributor, recording a surplus of $4.16 billion, up from $2.62 billion in the prior quarter. This was supported by a 9.79% rise in total exports to $13.91 billion, with crude oil exports reaching $8.59 billion and gas and non-oil exports each contributing $2.66 billion. Meanwhile, total imports declined to $9.75 billion, aided by reductions in both petroleum product and non-oil imports, while the weaker naira made Nigerian goods more competitive globally.

However, the services and primary income accounts posted deficits. The services account saw a net outflow of $3.69 billion, mainly due to higher payments for travel and business services. Similarly, the primary income account deficit widened to $2.02 billion, driven by increased interest payments to foreign investors. These outflows partially offset gains from the goods account.

The secondary income account, including remittances and foreign aid, recorded a net inflow of $5.29 billion, though lower than Q4 2024’s $6.44 billion. Personal remittances declined slightly to $4.93 billion, while a drop in foreign aid was linked to new U.S. executive restrictions. On the capital side, the financial account recorded a balance of $7.58 billion, reflecting a reversal in foreign portfolio investment and lower direct investment inflows.

Despite the current account surplus, Nigeria’s overall balance of payments registered a deficit of $2.77 billion in Q1 2025. This was accompanied by a fall in external reserves to $37.82 billion, down from $40.19 billion at the end of 2024. The net errors and omissions stood at $3.85 billion, indicating persistent reporting gaps in Nigeria’s external accounts.

Source: The Sun