Nigeria’s current account surplus jumps 68% to $7.54bn on oil exports, remittances
By Aboki Forex —
Nigeria’s current account surplus widened by 68% to $7.54 billion in the second quarter, Central Bank of Nigeria balance of payments data showed on Friday. The data, reported from Abuja on September 18, was boosted by higher oil, gas and refined petroleum products exports, stronger remittance inflows and increased foreign portfolio investment.
The overall balance of payments posted a $3.51 billion surplus. Foreign reserves climbed above $51 billion, even as deficits in services and investment income widened.
Trade surplus widens on export earnings
Nigeria’s goods trade surplus widened to $10.12 billion at end-June from $5.96 billion in the previous quarter. Total exports climbed to $20.08 billion from $15.56 billion.
Crude oil exports rose 15.8% to $9.39 billion. Gas exports jumped 40.2% to $3.63 billion, while refined petroleum product exports surged 66.2% to $3.94 billion. The data confirms the role of hydrocarbon and refined product sales in Nigeria’s external earnings, with the country remaining Africa’s biggest oil producer.
Portfolio inflows, remittances and reserves rise
Portfolio investment inflows rose to $7.09 billion from $6.03 billion. Foreign direct investment inflows increased to $1.15 billion from $1.03 billion.
Workers’ remittances, a key source of foreign exchange for Nigerian households, increased to $5.82 billion from $5.30 billion. External reserves rose to $51.39 billion in the second quarter from $48.35 billion at end-March.
The CBN data point to a stronger external position for Nigeria, helped by higher export earnings and improved inflows. The wider deficits in services and investment income remain a weak spot in the current account.
What it means for the naira
For the naira, the numbers suggest stronger external buffers. Reserves above $51 billion and higher remittance and portfolio inflows improve Nigeria’s ability to meet foreign exchange demand. Nigerian businesses and consumers will watch whether the higher dollar inflows ease pressure in the FX market in the coming months.