Nigeria’s Current Account Surplus Sees Significant Increase
Preliminary balance of payments statistics from the Central Bank of Nigeria reveal a remarkable surge in Nigeria’s current account surplus, which jumped 255.71% from $1.4 billion in the fourth quarter of 2025 to $4.98 billion in the first quarter of 2026. This increase reflects a robust external fiscal position, largely attributed to higher export revenues, a reduction in petroleum product imports, and a decrease in primary income outflows.
The Central Bank’s report for Q1 2026 indicated that this strengthening in the external position was bolstered by a broader fiscal surplus, which rose to $5.95 billion from $1.77 billion in the preceding quarter. This consistent improvement highlights the effectiveness of strategic economic measures and favorable market dynamics.
Highlights from the Balance of Payments Report
The report details that the first-quarter current account surplus of $4.98 billion is a marked improvement from both the $1.4 billion and $3.41 billion registered during the previous quarter and the same period last year, respectively. The merchandise account, which plays a critical role in evaluating trade performance, saw a dramatic quarter-on-quarter growth of 236.16%, climbing to $5.95 billion compared to $1.77 billion in Q4 2025 and $3.35 billion a year earlier.
According to the Central Bank, total exports surged from $13.36 billion in Q4 2025 to $15.49 billion in the first quarter of 2026, driven by increased shipments of crude oil, gas, and refined petroleum products. Notably, crude oil export revenues rose by 19.79% to $8.11 billion, supported by robust global demand and favorable pricing. Additionally, gas export earnings increased by 12.95%, while revenues from refined petroleum products grew by 20.30%, reaching $2.37 billion. Meanwhile, non-oil and power exports also saw a 4.62% increase to $2.49 billion.
On the import side, total imports for Q1 2026 witnessed a decline, falling to $9.54 billion from $11.59 billion in Q4 2025. This significant drop is largely attributed to reduced imports of refined petroleum products, which plummeted by 87.50%. However, it is noteworthy that crude oil imports saw a dramatic rise, increasing by 308.82% from $340 million to $1.39 billion.
Services Deficit Expands Despite Current Account Strength
Despite the promising current account surplus, several other components of the balance of payments displayed a mixed performance. The services balance deficit expanded from $3.32 billion in Q4 2025 to $3.71 billion in Q1 2026. According to the Central Bank, this increase in net service payments is primarily due to higher expenditures related to travel and business services. Conversely, the primary income balance deficit narrowed to $2.83 billion, a slight improvement from $3.27 billion, as dividend and interest payments to non-residents, especially direct investors, decreased.
In terms of secondary income, the balance dropped to $5.57 billion from $6.21 billion in the previous quarter. Personal remittances, crucial for many households, fell to $5.3 billion from $5.72 billion. This indicates that while trade dynamics favorably impacted the current account balance, remittance inflows saw a notable decline during this period.
Foreign Investments Influence Financial Account
Net borrowings within the financial account totaled $2.51 billion for Q1 2026, reflecting an increase from $1.96 billion in the previous quarter. Significant inflows into portfolio investment liabilities, which rose to $6.03 billion from $5.27 billion, highlight sustained interest from foreign investors in Nigeria’s financial markets. However, direct investment inflows experienced a slight decrease from $1.11 billion to $1.03 billion, suggesting a cautious stance among foreign direct investors.
The report further indicates outflows from portfolio assets and direct investment assets of $260 million and $200 million respectively. This suggests a strategic movement of Nigerian investments abroad during the period. Other invested liabilities recorded inflows of $220 million, with other invested assets seeing a significant inflow of $1.93 billion. Overall, Nigeria’s balance of payments surplus in Q1 2026 amounted to $2.38 billion, a reduction from the $2.67 billion surplus reported for Q4 2025.
Moreover, the report noted a widening of net errors and omissions to negative $7.49 billion from negative $3.36 billion in the last quarter. Positively, external reserves increased significantly, rising from $45.75 billion at the end of December 2025 to $48.35 billion by the close of March 2026, indicating a solid financial underpinning and enhanced stability in Nigeria’s external sector.
