Nigeria posted a strong trade performance in the first quarter of 2025, with a current account surplus of $3.73bn and a 9.79 per cent rise in export earnings.
The performance underscores the resilience of the country’s external sector amid global headwinds and domestic economic reforms.
According to the Central Bank of Nigeria’s (CBN) Balance of Payments report for the first quarter of this year, the surplus, although marginally lower than the $3.80bn recorded in the previous quarter, remains significantly stronger than the $3.69bn posted in Q1 2024, reflecting improved competitiveness and sustained global demand for Nigerian exports.
One of the major highlights of the report is Nigeria’s growing non-oil export performance. Non-oil and electricity exports surged by 30.4 per cent in Q1 2025, while gas exports also rose sharply by 26.7 per cent to $2.66bn. Crude oil exports, the traditional mainstay of the economy, remained stable at $8.59bn—providing a firm foundation for external earnings.
Combined with a moderate decline in imports to $9.75bn—down from $10.05bn in Q4 2024—Nigeria’s trade balance improved markedly, rising to $4.16bn from $2.62bn.
Analysts say this reflects increasing self-sufficiency, greater value addition in local industries, and a favourable shift in Nigeria’s trade dynamics.
“This trade performance is encouraging. It shows Nigeria is not only sustaining export earnings but also expanding in non-oil sectors, which is essential for long-term diversification,” the Registrar of the Institute of Finance and Control of Nigeria, Godwin Eohoi said.
While capital flows experienced some volatility—particularly in short-term portfolio investment, which swung to a net outflow of $5.03bn—foreign direct investment (FDI) remained relatively stable.
FDI inflows stood at $250m, down slightly from $310m in Q4 2024, but a notable turnaround from the net divestment recorded in Q1 2024.
Eohoi said this signals a gradual return of investor confidence in Nigeria’s long-term fundamentals, especially in sectors such as manufacturing, energy, and digital services.
In addition, the balance on the financial account, though lower than in the previous quarter, stood at a healthy $7.58bn—supported by ongoing economic restructuring efforts and stronger regulatory oversight.
The CBN report also noted that direct investment by Nigerians into foreign markets stood at $550m, indicating a growing appetite among local investors to diversify and expand globally.
Despite a decline in foreign reserves—down by $2.37bn to \$37.82bn—the external reserves remain robust and capable of covering several months of imports.
Policymakers believe ongoing fiscal and monetary reforms will help restore capital inflows in subsequent quarters.
Furthermore, export-led growth and trade surpluses are providing much-needed buffers against short-term capital flow volatility.
The depreciation of the naira has also enhanced the global competitiveness of Nigerian goods, helping exporters take advantage of international market opportunities.
Remittance inflows, though slightly lower, remained solid at $4.93bn, continuing to play a key role in supporting household consumption and stabilizing the foreign exchange market.
Overall, the report paints a picture of cautious optimism: while short-term capital inflows may be adjusting to global financial conditions and domestic reforms, Nigeria’s real sector—especially trade and production—continues to show resilience and upward momentum.
With ongoing policy realignment, improved investor engagement, and structural reforms, experts believe Nigeria is laying a stronger foundation for long-term stability, diversification, and inclusive growth.
The 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform agenda. The liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have all contributed to enhanced competitiveness and investor sentiment.
The CBN Governor, Olayemi Cardoso had said the positive turnaround in thet country’s external finances is evidence of effective policy
implementation and tye apex bank unwavering commitment to macroeconomic stability,
“This surplus marks an important step forward
for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” Cardoso had said.
.