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However, the naira depreciated by 40.9 percent over the same period, closing the year at N1,535 per US dollar, representing N628 depreciation, compared to the closing rate of N907.1/$1 in 2023 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), which has since been renamed the Nigerian Foreign Exchange Market (NFEM).

Nigeria leads several African nations

According to the World Bank, remittance flows into Nigeria remain far above those of many other African countries. For example, remittance inflows into Ghana reached $2.43 billion in 2023, up from $2.07 billion in 2022, while South Africa recorded a decline from $872.85 million in 2022 to $803.3 million in 2023.

Improved financial account, reserve position

Nigeria recorded a net acquisition of financial assets amounting to $12.12 billion in 2024. Portfolio investment inflows more than doubled, rising by 106.5 percent to $13.35 billion.

Resident foreign currency holdings also increased by $5.41 billion, suggesting growing confidence in the domestic economy. Although foreign direct investment (FDI) declined by 42.3 percent to $1.08 billion, the country’s overall financial account still recorded significant gains.

Cardoso attributed the improvement in remittances to recent economic reforms, noting a remarkable rise in monthly remittance inflows from $250 million earlier in 2024 to $600 million by September 2024. He explained that more Nigerians in the diaspora are choosing formal channels to remit funds, thanks to new CBN policies that have made official remittance platforms more appealing.

Expressing optimism about Nigeria’s economic prospects, Cardoso highlighted the recent stabilisation of the foreign exchange market and growth in key economic sectors as indicators of recovery. He emphasised that increased remittances, combined with a more stable macroeconomic environment, would support further economic progress.

He also reaffirmed his commitment to deepening collaboration with the Nigerian diaspora community, particularly in the Middle East, to strengthen remittance flows and enhance the resilience of Nigeria’s financial system. Cardoso pledged that the CBN would continue implementing policies that would strengthen macroeconomic fundamentals, promote private sector growth and generate high-quality employment opportunities for Nigerians.

Members of the Monetary Policy Committee (MPC) have expressed confidence that, following significant monetary and fiscal policy measures, inflows from FDI, portfolio investment, and diaspora remittances are poised to rise further as investor and stakeholder confidence strengthens.

The CBN also reported a balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year, a sharp turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022, according to Hakama Sidi-Ali, acting director of corporate communications.

Nigeria’s improved BOP position reflects the impact of comprehensive macroeconomic reforms, enhanced trade performance and renewed investor confidence in the economy.

Stronger trade, external account performance

In 2024, Nigeria’s current and capital account recorded a surplus of $17.22 billion, supported by a substantial goods trade surplus of $13.17 billion. Petroleum imports fell by 23.2 percent to $14.06 billion, while non-oil imports dropped by 12.6 percent to $25.74 billion. On the export side, gas exports rose by 48.3 percent to $8.66 billion, and non-oil exports grew by 24.6 percent to $7.46 billion.

Marked improvement in data integrity

A notable development in 2024 was the significant reduction in net errors and omissions, which narrowed by 79.5 percent to a negative $5.10 billion, down from $24.90 billion in 2023. This reflects major advancements in data collection, transparency, and overall accuracy in national reporting systems.

Outlook, policy impact

The balance of payments surplus for 2024 underscores the effectiveness of Nigeria’s reform agenda, say analysts. Key factors such as the liberalisation and unification of the foreign exchange market, disciplined monetary policy to manage inflation, and coordinated fiscal and monetary measures have all contributed to improved economic competitiveness and investor sentiment, they add.

“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said Cardoso.

“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”