$3.73 billion Current Account Surplus Reflects Resilient Export Drive by Nigeria —Experts

• As $2.77bn BoP deficit in Q1 hinges on external pressure

BY Bonny Amadi

Nigeria’s Q1 2025 current account surplus recorded in the first quarter of the first quarter 2025 has been described by experts as a reflection of the performance of resilient export drive by Nigerians.

This, they experts maintained, was driven by stronger oil and non-oil earnings and weaker import demand.

Experts at the Cowry Asset, however maintained that, rising capital reversals and a wider financial account deficit signal persistent investor caution, adding “The overall balance of payment (BoP) deficit and falling reserves suggest external pressures remain a key concern”

This, they maintained, contributed to a drawdown in the country’s external reserves, which fell from $40.19 billion at the end of December 2024 to $37.82 billion by the end of March 2025.” The overall balance of payments, however, ended in a deficit of $2.77 billion for the quarter”

The reports contained in the Central Bank of Nigeria’s (CBN) provisional Balance of Payments (BoP) statistics for Q1 2025 show that Nigeria recorded a current account surplus of $3.73 billion.

While this marked a slight decline from the $3.80 billion recorded in Q4 2024, it was marginally higher than the $3.69 billion posted in the same period of the previous year.

The surplus was under- pinned by improvements in key areas of the current account, particularly the goods account, which rose significantly from $2.62 billion in Q4 2024 to $4.16 billion in Q1 2025. This gain was largely attributed to a rise in export earnings and a moderation in imports.

Export receipts grew by 9.79% to $13.91 billion during the quarter, helped by higher oil and gas volumes as well as improved non-oil exports. The depreciation of the naira also played a role, making Nigerian goods more competitive in the international market.

On the import side, total imports declined to $9.75 billion from $10.05 billion in the previous quarter, reflecting reduced demand for petroleum products and other non-oil goods.

Within exports, gas exports were particularly strong, increasing from $2.10 billion to $2.66 billion, representing a 26.7% quarter-on-quarter growth. Non-oil and electricity exports also performed well, rising by 30.39% to $2.66 billion compared to $2.04 billion in Q4 2024. Meanwhile, non-oil imports fell from $7.37 billion to $6.77 billion, further supporting the current account position.

The secondary income account also remained in surplus at $5.29 billion, though this represented a 17.86% decline from the previous quarter.

However, other components of the current account showed mixed trends. Net out payments in the services account increased slightly to $3.69 billion, up from $3.48 billion in Q4, driven by higher spending on travel and business services.

Financial services receipts were also weaker in the period. In the primary income account, the debit balance widened by 13.48% to $2.02 billion, reflecting higher interest payments to foreign investors.