LAGOS, Sept 18 – Nigeria’s current account surplus widened 68% to $7.54 billion in the second quarter, supported by stronger oil, gas and refined petroleum exports, higher remittance inflows and increased foreign portfolio investment, according to Central Bank of Nigeria balance of payments data.
The improvement points to a stronger external position for Africa’s largest oil producer, with the country’s overall balance of payments recording a $3.51 billion surplus during the quarter. Foreign exchange reserves also increased above $51 billion despite wider deficits in services and investment income.
The country’s goods trade surplus expanded to $10.12 billion at the end of June, from $5.96 billion in the previous quarter. Total exports rose to $20.08 billion from $15.56 billion over the same period.
Oil remained the largest contributor to export earnings, although other energy segments recorded stronger growth. Crude oil exports increased 15.8% to $9.39 billion, while natural gas exports climbed 40.2% to $3.63 billion.
Exports of refined petroleum products recorded the sharpest increase among the major energy categories, rising 66.2% to $3.94 billion. The increase reflects the growing contribution of refined products to Nigeria’s external trade as domestic refining capacity expands.
Capital inflows also strengthened during the quarter. Foreign portfolio investment rose to $7.09 billion from $6.03 billion in the previous quarter, while foreign direct investment increased to $1.15 billion from $1.03 billion.
Workers’ remittances provided another source of external support, increasing to $5.82 billion from $5.30 billion. Remittance flows remain an important source of foreign currency for Nigeria and contributed to the improvement in the current account position.
Nigeria’s external reserves rose to $51.39 billion at the end of the second quarter, compared with $48.35 billion at the end of March.
The combination of stronger merchandise exports, rising remittances and increased investment inflows helped offset deterioration in services and investment income balances, allowing the country to record a sizeable current account surplus.
The latest figures underline the growing importance of energy exports and foreign capital inflows to Nigeria’s external accounts, while the increase in reserves provides additional foreign exchange liquidity as the country continues to adjust to changes in its currency and economic policy environment.
