Nigeria’s external balance strengthened as the current account surplus jumped to $4.98 billion

Nigeria recorded a significant improvement in external sector performance in the first quarter of 2026, with the current account surplus increasing to $4.98 billion, an increase of 255.7 percent from the previous quarter. This growth was largely driven by stronger revenues from exports of crude oil, gas and refined oil, coupled with a sharp decline in the fuel import bill.

The figures are contained in the latest Balance of Payments report released by the Central Bank of Nigeria on Wednesday.

According to the apex bank, “interim balance of payments statistics for Q1 2026 shows a current account surplus of $4.98 billion, higher than $1.40 billion and $3.41 billion recorded in the previous quarter (Q4 2025) and the same period (Q1 2025).”

The latest surplus exceeds the $1.40 billion recorded in the final quarter of 2025 by more than two and a half times and is also much higher than the $3.41 billion recorded in the same period last year.

The CBN attributed the stronger performance to increased export receipts from the oil and gas sector, increased refined oil exports, lower fuel import costs, and reduced payments made abroad under primary income accounts.

Data from the report showed that crude oil export revenues rose to $8.11 billion in the quarter, compared with $6.77 billion in the fourth quarter of 2025. Gas exports also increased to $2.53 billion from $2.24 billion, while refined oil exports increased to $2.37 billion from $1.97 billion.

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At the same time, the country’s spending on imports of refined petroleum products declined sharply, dropping by 87.5 percent to $310 million from $2.48 billion recorded in the previous quarter.

Stronger export performance resulted in a substantial improvement in the goods balance, resulting in a surplus of $5.95 billion in the quarter. This amount is a significant increase from the $1.77 billion recorded in the last quarter of 2025 and the $3.35 billion achieved in the same period of 2025.

Highlighting the development, the CBN stated: “The goods balance (the main sub-account in the current account) recorded a much higher surplus of $5.95 billion in the first quarter of 2026, compared to $1.77 billion and $3.35 billion recorded in the previous quarter and the same period of 2025.”

Overall exports increased to $15.49 billion from $13.36 billion in the previous quarter, mainly supported by increased crude oil and gas sales. Meanwhile, imports fell to $9.54 billion from $11.59 billion largely due to lower demand for fuel and non-oil imports.

On a quarterly basis, crude oil exports grew by 19.79 percent to $8.11 billion, gas exports increased by 12.95 percent to $2.53 billion, while refined oil exports increased by 20.3 percent to $2.37 billion. Non-oil exports also recorded moderate growth, rising 4.62 percent to $2.49 billion.

On the import side, non-oil and gas imports fell 10.49 percent to $7.85 billion. Fuel imports saw the sharpest decline, falling from $2.48 billion to $310 million. However, crude oil imports increased from $340 million to $1.39 billion in the same period.

Even though trade performance is strong, services transactions are still a drag on current transactions. Net payments for services increased to $3.71 billion from $3.32 billion in the previous quarter.

Explaining this trend, the CBN noted: “The increase in net payments for services was largely due to an increase in net debits in travel and other business services.”

The primary income account also remained in deficit, although the gap narrowed to $2.83 billion from $3.27 billion due to a decrease in dividend and interest payments to foreign investors.

The report explains that “This was largely due to a decrease in payments (dividends and interest) on non-resident investments that were largely made to direct investors.”

Meanwhile, inflows originating from secondary income accounts, which include diaspora remittances, weakened in the quarter. The account surplus fell to $5.57 billion from $6.21 billion, while personal transfers from Nigerians abroad fell to $5.30 billion from $5.72 billion.

The financial balance remained in deficit, with net loans increasing to $2.51 billion from $1.96 billion in the previous quarter. However, foreign portfolio investment inflows strengthened to $6.03 billion, compared with $5.27 billion in the fourth quarter of 2025. Direct investment inflows eased slightly to $1.03 billion from $1.11 billion.

The CBN attributed the development in the financial balance to stronger portfolio investment, slightly weaker direct investment inflows, accumulation of foreign exchange reserves, and increased overseas investment activity by Nigerians.

Overall, Nigeria recorded a balance of payments surplus of $2.38 billion in the first quarter of 2026, slightly below the $2.67 billion achieved in the previous quarter. Despite this, the country’s foreign exchange reserves increased rapidly, increasing from $45.75 billion at the end of December 2025 to $48.35 billion in March 2026.

One area of ​​concern in the report was widespread errors and omissions, which increased to negative $7.49 billion from negative $3.36 billion in the previous quarter.

The latest data shows that higher oil production, stronger petroleum export earnings and reduced dependence on imported fuel continue to strengthen Nigeria’s external position in early 2026, helping to offset weaker remittance inflows and increased service-related payments abroad.