Nigeria witnessed a major economic milestone in 2024, as personal remittance inflows rose to $20.93 billion, representing an 8.9% increase compared to the previous year. The data was revealed in a statement by the Central Bank of Nigeria (CBN) on Wednesday, marking a significant indicator of economic resilience amid ongoing fiscal and monetary reforms.
Personal remittances inflows, According to the CBN, the country’s Balance of Payments (BoP) also swung into surplus territory, posting a $6.83 billion surplus in 2024—an impressive recovery from the deficits of $3.34 billion and $3.32 billion recorded in 2023 and 2022 respectively. The apex bank attributed this turnaround to a combination of macroeconomic reforms, trade performance, improved investor confidence, and strengthened diaspora engagement.
The statement, signed by Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, highlighted the growing importance of remittance flows as a stable source of foreign exchange and economic support for millions of Nigerian households.
A notable driver of the remittance surge was the robust performance of International Money Transfer Operators (IMTOs). Remittances routed through IMTOs skyrocketed by 43.5% in 2024, reaching $4.73 billion, up from $3.30 billion in 2023. This performance underscores renewed confidence among Nigerians in the diaspora in official remittance channels, particularly following the CBN’s FX market unification policy.
The apex bank also reported a 6.2% increase in Official Development Assistance (ODA), which grew to $3.37 billion, contributing further to the country’s external inflows.
Further strengthening Nigeria’s external position, the current and capital accounts recorded a combined surplus of $17.22 billion in 2024. This was anchored by a goods trade surplus of $13.17 billion, reflecting improved export earnings and disciplined import management.
Non-oil exports grew by 24.6% to $7.46 billion, while gas exports jumped by a substantial 48.3% to $8.66 billion. Meanwhile, petroleum product imports dropped by 23.2% to $14.06 billion, and non-oil imports declined by 12.6% to $25.74 billion. These numbers point to a deliberate shift in consumption patterns and better domestic supply chain efficiency, supported by policy direction from the Federal Government.
On the financial account side, the CBN reported a net acquisition of financial assets totaling $12.12 billion. Portfolio investments played a leading role, more than doubling with a 106.5% increase to $13.35 billion. However, Foreign Direct Investment (FDI) saw a sharp decline, falling by 42.3% to $1.08 billion—highlighting lingering concerns among long-term investors despite improving fundamentals.
Nigeria’s external reserves closed the year at $40.19 billion, marking a $6 billion increase over the previous year. This growth has fortified the country’s foreign exchange buffer, providing added stability to the naira and insulating the economy from external shocks.
One of the key highlights of the CBN’s disclosure was a substantial improvement in data reporting. Net errors and omissions, a category used to account for discrepancies in the balance of payments data, declined sharply by 79.5%—from a staggering negative $24.90 billion in 2023 to just negative $5.10 billion in 2024. The bank credited this improvement to enhanced data capture systems and improved transparency in financial transactions.
Reacting to the figures, the CBN Governor emphasized the importance of recent economic policies in driving the positive momentum. “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability. This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” the statement read.
The bank reiterated that its reform agenda—comprising the liberalization and unification of the foreign exchange market, a disciplined monetary policy stance, and synchronized fiscal-monetary interventions—was central to restoring confidence in the economy.
Analysts view the rising remittance figures as a testament to the strong connection between the Nigerian diaspora and the home economy. Personal remittances have long served as a lifeline for millions of families and a critical pillar of foreign exchange stability. With Nigeria ranking among the top remittance-receiving countries in Sub-Saharan Africa, the sustained growth of these inflows provides a buffer against external volatility and currency depreciation.
Despite the decline in FDI, the significant rebound in portfolio investments, increased trade surpluses, and healthier reserves all point toward a cautiously optimistic economic outlook for 2025. The challenge ahead lies in translating these gains into inclusive growth, sustainable job creation, and enhanced investor confidence in long-term assets.
With personal remittances hitting $20.93 billion and the balance of payments turning positive, Nigeria’s economic recovery appears to be gaining traction. The CBN’s proactive policies and data-driven approach are contributing to a more stable external sector, offering hope for continued progress in 2025.
As the government and the central bank deepen reforms, stakeholders across the financial ecosystem will be watching closely to see if the positive trends can be sustained—and transformed into tangible development outcomes for the Nigerian people.