From Adanna Nnamani, Abuja
Nigeria recorded a current account surplus of $3.73 billion in the first quarter of 2025, buoyed by a strong rebound in the goods account and a surge in non-oil exports.
This was according to the latest Balance of Payments (BoP) statistics released by the Central Bank of Nigeria (CBN).
Though the surplus declined slightly by 1.84 per cent from $3.80 billion in Q4 2024, it was marginally higher than the $3.69 billion posted in Q1 2024.
The improvement was largely attributed to a 30.39 per cent increase in non-oil exports, which rose to $2.66 billion in the period under review. Gas exports also saw a significant jump, increasing from $2.10 billion to $2.66 billion. On the import side, non-oil imports dropped by 8.14 per cent to $6.77 billion, further strengthening the trade position.
The goods account, a major component of the current account, recorded a surplus of $4.16 billion in Q1 2025, up from $2.62 billion in the previous quarter.
This was driven by a 9.79 per cent rise in total exports to $13.91 billion, spurred by increased oil and gas shipments and the depreciation of the naira, which boosted the competitiveness of Nigerian non-oil goods in global markets.
Crude oil exports stood at $8.59 billion, while gas exports and non-oil exports each accounted for $2.66 billion. Meanwhile, total imports declined to $9.75 billion from $10.05 billion in Q4 2024, with petroleum products and non-oil imports both dropping.
However, other segments of the current account showed signs of weakness. The services account posted a net outflow of $3.69 billion, up from $3.48 billion in Q4 2024, due to increased net payments for travel and business services, as well as reduced financial services receipts.
Similarly, the primary income account deficit widened by 13.48 per cent to $2.02 billion, largely on account of higher interest payments to foreign investors.
The secondary income account, which includes diaspora remittances and foreign aid, registered a net inflow of $5.29 billion, down from $6.44 billion in the previous quarter.
Personal remittances from Nigerians abroad declined slightly to $4.93 billion in Q1 2025, from $5.08 billion in Q4 2024. The drop in foreign aid was linked to a recent executive order signed by the U.S. President, which may have impacted inflows.
The financial account recorded a balance of $7.58 billion in Q1 2025, down from $7.82 billion in the previous quarter. This was due to a sharp reversal of foreign portfolio investment (FPI) inflows, which swung to a net divestment of $5.03 billion. Direct investment inflows also dipped slightly to $0.25 billion from $0.31 billion in Q4 2024.
There was a significant reversal in other investment liabilities of $4.32 billion, and an outflow of $1.31 billion in other investment assets, compared to a reversal of $1.54 billion in the preceding quarter.
The CBN data also showed that Nigerian investments abroad saw a moderate outflow, with portfolio assets recording an outflow of $0.48 billion, while direct investment assets reversed by $0.55 billion.
Meanwhile, the country’s net errors and omissions amounted to $3.85 billion in Q1 2025, slightly below the $4.02 billion posted in Q4 2024.
Despite the current account surplus, Nigeria’s overall balance of payments recorded a deficit of $2.77 billion in Q1 2025. This coincided with a decline in the external reserves to $37.82 billion as of end-March 2025, compared to $40.19 billion at end-December 2024.
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