Lagos — The Central Bank of Nigeria’s provisional Balance of Payments (BOP) data for Q1 2025 revealed a current account surplus of US$3.73 billion, slightly down from US$3.80 billion in Q4 2024, but up from US$3.69 billion in Q1 2024.
The surplus was driven by a stronger goods account balance of US$4.16 billion, buoyed by a 9.79% increase in exports to US$13.91 billion, and a decline in imports to US$9.75 billion, particularly non-oil imports.
However, the services account and the primary income account posted higher deficits of US$3.69 billion and US$2.02 billion, respectively, while the secondary income account remained positive at US$5.29 billion, although this was lower than the previous quarter.
On the financial account, a net balance of US$7.58 billion was recorded, reflecting a significant reversal of US$5.03 billion in portfolio investment inflows. Despite a resilient current account, the overall BOP recorded a deficit of US$2.77 billion due to sustained capital outflows and debt repayments.
External reserves declined to US$37.82 billion at the end of March 2025. The data present a strong need for policies that enhance capital retention and attract stable, long-term investment.
Considering sustained external pressures, strengthening Nigeria’s macroeconomic fundamentals, particularly through export diversification, investment climate reforms, and improved capital controls, will be crucial for ensuring external sector stability over the medium term. This can be achieved by implementing targeted policies that broaden Nigeria’s export base beyond oil, streamline regulatory and tax frameworks to attract productive investment, and reinforce oversight of foreign exchange and capital flows to safeguard the external reserves.
