Nigeria posted a robust current account surplus of $4.98 billion in the first quarter of 2026, driven by stronger earnings from crude oil, gas and refined petroleum exports, according to the latest Balance of Payments report released by the Central Bank of Nigeria (CBN).
The figure represents a substantial increase from the $1.40 billion surplus recorded in the fourth quarter of 2025 and exceeds the $3.41 billion reported in the corresponding period of last year, underscoring an improvement in the country's external sector performance.
The CBN attributed the development to rising export revenues from the oil and gas sector, reduced importation of refined petroleum products and lower payments on foreign investments.
A breakdown of the report showed that crude oil export earnings rose to $8.11 billion during the quarter, compared with $6.77 billion in the preceding quarter. Gas exports generated $2.53 billion, while refined petroleum product exports increased to $2.37 billion.
At the same time, Nigeria's expenditure on imported refined petroleum products fell dramatically to $310 million from $2.48 billion in the previous quarter, reflecting a growing shift towards domestic fuel supply.
The country's trade balance recorded significant gains during the period. The goods account surplus rose to $5.95 billion, up from $1.77 billion in the fourth quarter of 2025, supported by a combination of higher exports and reduced imports.
Total exports climbed to $15.49 billion from $13.36 billion, largely on the back of stronger crude oil and gas sales. Imports, meanwhile, declined to $9.54 billion from $11.59 billion, aided by lower purchases of refined petroleum products and a reduction in non-oil imports.
Non-oil exports also recorded moderate growth, reaching $2.49 billion, while non-oil imports fell to $7.85 billion. However, crude oil imports increased significantly to $1.39 billion from $340 million in the previous quarter.
While trade performance improved, the services account continued to exert pressure on the current account. Net service payments increased to $3.71 billion from $3.32 billion, largely due to higher spending on travel and business services abroad.
The report further showed that the primary income deficit narrowed to $2.83 billion from $3.27 billion, indicating a decline in dividend and interest payments to foreign investors.
Remittance inflows, however, softened during the quarter. The surplus on the secondary income account fell to $5.57 billion from $6.21 billion, as personal transfers from Nigerians in the diaspora declined to $5.30 billion.
In the financial account, portfolio investment inflows strengthened to $6.03 billion, reflecting sustained investor interest in Nigerian assets. Direct investment inflows slipped marginally to $1.03 billion from $1.11 billion recorded in the previous quarter.
The report also indicated that Nigerian investors increased their investments abroad, with outflows recorded under both direct and portfolio investment categories.
Despite the stronger current account position, Nigeria's overall balance of payments surplus eased slightly to $2.38 billion from $2.67 billion in the preceding quarter.
The country's external reserves, however, continued to improve, rising to $48.35 billion at the end of March 2026, compared with $45.75 billion at the end of December 2025.
Analysts say the latest figures reflect the growing impact of increased oil production and domestic refining on Nigeria's external finances. They note that sustained growth in petroleum exports and reduced reliance on imported fuel could further strengthen the country's balance of payments and foreign reserve position in the months ahead.
However, they caution that weaker remittance inflows and rising service-related payments remain areas that require attention as the country seeks to consolidate gains in the external sector.
Leave a Reply