By John Audu.
Nigerians living abroad sent home a substantial $20.93 billion in personal remittances in 2024, marking an 8.9 percent year-on-year increase, the Central Bank of Nigeria (CBN) announced on Wednesday. This surge in diaspora inflows played a significant role in the nation achieving an overall balance of payments surplus of $6.83 billion for the same period.
The figures, released in a statement signed by the CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi-Ali, represent a remarkable recovery from deficits of $3.34 billion and $3.32 billion recorded in 2023 and 2022, respectively. The CBN attributed this positive shift to a combination of effective macroeconomic reforms, stronger trade performance, and a renewed sense of confidence among investors.
The report detailed that the resilience of remittance inflows was a key factor, with funds transferred through International Money Transfer Operators (IMTOs) witnessing a significant 43.5 percent jump to $4.73 billion, up from $3.30 billion in the previous year. The CBN highlighted this increase as a reflection of stronger engagement from the Nigerian diaspora. Additionally, official development assistance also saw a positive trend, rising by 6.2 percent to $3.37 billion.
The robust remittance figures contributed to a healthy $17.22 billion surplus in the current and capital accounts, which was further bolstered by a $13.17 billion surplus in the trade of goods. Notably, non-oil exports saw a significant 24.6 percent increase to $7.46 billion, while gas exports surged by 48.3 percent to $8.66 billion. Conversely, petroleum imports decreased by 23.2 percent to $14.06 billion, and non-oil imports declined by 12.6 percent to $25.74 billion.
On the financial front, Nigeria recorded a net acquisition of financial assets amounting to $12.12 billion. Portfolio investment inflows more than doubled, climbing by 106.5 percent to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion. However, foreign direct investment saw a decrease of 42.3 percent, settling at $1.08 billion.
The nation’s external reserves also experienced positive growth, increasing by $6 billion to reach $40.19 billion by the end of 2024, providing a stronger buffer for the country’s foreign exchange position.
Furthermore, the CBN reported a substantial improvement in data accuracy, with net errors and omissions declining by 79.5 percent to a negative $5.10 billion in 2024, a significant drop from the negative $24.90 billion recorded in 2023. The apex bank credited this improvement to enhanced data capture and greater transparency.
CBN Governor, commenting on the positive figures, 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.”
The CBN further emphasized that the improved external financial position is a direct result of ongoing policy reforms, including the liberalization and unification of the foreign exchange market, a disciplined approach to monetary policy, and coordinated fiscal and monetary interventions.
