Nigeria's balance of payments surplus declined to $2.38 billion in the first quarter of 2026, down from $2.67 billion recorded in the preceding quarter, despite a significant improvement in the country's current account position, according to new figures released by the Central Bank of Nigeria (CBN).
The data showed that stronger earnings from crude oil, gas and refined petroleum exports boosted Nigeria's external trade performance during the period, while a substantial reduction in fuel imports helped widen the current account surplus.
The apex bank reported that the current account surplus rose sharply to $4.98 billion in the first three months of 2026, compared to $1.40 billion in the fourth quarter of 2025 and $3.41 billion in the corresponding period of last year.
The improvement was driven largely by growth in export receipts from the oil and gas sector. Crude oil exports increased by 19.8 per cent to $8.11 billion from $6.77 billion in the previous quarter, while gas exports rose by 13 per cent to $2.53 billion.
Refined petroleum product exports also strengthened, rising by 20.3 per cent to $2.37 billion during the review period.
At the same time, Nigeria's expenditure on imported refined petroleum products dropped significantly, falling by 87.5 per cent to $310 million from $2.48 billion in the fourth quarter of 2025.
The sharp decline in fuel imports contributed to a stronger trade balance, with the goods account surplus climbing to $5.95 billion from $1.77 billion in the preceding quarter.
Overall exports increased to $15.49 billion in the first quarter from $13.36 billion in the previous quarter, while non-oil exports rose modestly by 4.62 per cent to $2.49 billion.
Imports, however, declined to $9.54 billion from $11.59 billion, reflecting reduced demand for foreign goods, particularly refined petroleum products.
Despite the decline in overall imports, crude oil imports rose significantly to $1.39 billion from $340 million in the previous quarter. Non-oil imports, on the other hand, fell by 10.49 per cent to $7.85 billion.
The report also highlighted continued pressure on the services account, which recorded net outflows of $3.71 billion, up from $3.32 billion in the final quarter of 2025. The increase was attributed mainly to higher spending on travel and business-related services.
Nigeria's primary income account showed some improvement, with the deficit narrowing to $2.83 billion from $3.27 billion. The CBN attributed this to lower dividend and interest payments to foreign investors.
However, inflows through the secondary income account, which includes remittances from Nigerians abroad and personal transfers, declined to $5.57 billion from $6.21 billion recorded in the preceding quarter.
On the capital side, the financial account remained in a net borrowing position, recording net borrowing of $2.51 billion compared to $1.96 billion in the previous quarter.
According to the CBN, the increase was largely supported by stronger foreign portfolio investment inflows, which rose to $6.03 billion from $5.27 billion in the fourth quarter of 2025.
The improvement in portfolio investments helped cushion the impact of a slight decline in foreign direct investment during the period.
Meanwhile, Nigeria's external reserves continued their upward trajectory, rising to $48.35 billion at the end of March 2026 from $45.75 billion at the close of December 2025.
The reserve growth reflects stronger foreign exchange inflows and improving confidence in the country's external sector, even as policymakers continue efforts to sustain export growth and attract foreign capital.
Analysts say the latest balance of payments figures underscore the growing impact of higher oil export earnings and lower fuel import costs on Nigeria's external accounts, although pressures from services payments and weaker remittance inflows remain areas of concern.
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