In a major boost to Nigeria’s external position, the country recorded a current account surplus of $4.98bn in the first quarter of 2026, marking a sharp 255.7% increase compared to the previous quarter. According to data released by the Central Bank of Nigeria, the performance reflects stronger export earnings and a significant drop in fuel import costs.
The surge was largely driven by higher crude oil, gas, and refined petroleum exports, alongside reduced dependence on imported petroleum products. Crude oil exports alone climbed to $8.11bn, while gas and refined product exports also posted steady gains, reinforcing Nigeria’s position as an oil-dependent but strengthening export economy. At the same time, refined fuel imports fell sharply, easing pressure on the country’s external accounts.
Breaking down the figures, Nigeria’s total exports rose to $15.49bn, while imports dropped to $9.54bn during the quarter. The goods account—Nigeria’s strongest component of the current account—posted a surplus of $5.95bn. Non-oil exports also showed modest growth, signaling early but limited diversification beyond hydrocarbons.
However, not all segments moved in the same direction. Service-related payments increased due to higher travel and business service costs, while diaspora remittances dipped slightly to $5.30bn. The financial account remained in deficit, even as portfolio inflows improved, reflecting continued foreign investor activity but also rising outward investments by residents.
Despite these mixed signals, Nigeria’s external reserves strengthened to $48.35bn by March 2026, underscoring improved short-term stability. Analysts say the outlook remains tied to oil performance, as rising exports continue to offset weaker remittances and higher service outflows, keeping the country’s external balance in positive territory.
source: punch