The Central Bank of Nigeria (CBN) has reported a decline in the country’s balance of payments (BOP) surplus, which fell to $2.38 billion in the first quarter of 2026, down from $2.67 billion recorded in the preceding quarter.
The balance of payments is a key economic indicator that tracks all financial transactions between a country and the rest of the world within a given period. A surplus indicates that a nation is earning more foreign exchange from trade, investment, and transfers than it is spending externally, resulting in a net inflow of foreign currency.
Despite the overall decline in the BOP surplus, Nigeria recorded a stronger performance in its current account during the period under review.
According to provisional data released by the apex bank, the current account surplus rose sharply to $4.98 billion in Q1 2026, compared to $1.40 billion in Q4 2025 and $3.41 billion in the same period of 2025.
“Provisional balance of payments (BOP) statistics for Q1 2026 show current account surplus of US$4.98 billion, which was higher than the US$1.40 billion and US$3.41 billion recorded in the preceding quarter (Q4 2025) and corresponding period (Q1 2025) respectively,” the CBN stated.
The improvement was largely supported by higher export earnings across key sectors, particularly crude oil, gas, and refined petroleum products, alongside a significant drop in fuel import bills.
Crude oil export earnings climbed by 19.8 percent to $8.11 billion, up from $6.77 billion in the previous quarter. Gas exports also increased by 13 percent to $2.53 billion, while refined petroleum product exports rose by 20.3 percent to $2.37 billion.
On the import side, refined petroleum product imports recorded a dramatic 87.5 percent decline, falling to $310 million from $2.48 billion in Q4 2025, a shift that significantly improved the country’s trade position.
As a result, the goods account surplus expanded strongly to $5.95 billion from $1.77 billion in the previous quarter. Total exports rose to $15.49 billion, while imports dropped to $9.54 billion over the same period.
Non-oil exports also recorded modest growth of 4.62 percent, reaching $2.49 billion, reflecting gradual diversification efforts within the economy.
However, not all components of the external accounts showed improvement. Net outpayments in the services account increased to $3.71 billion from $3.32 billion, driven by higher spending on travel and business-related services.
The primary income account showed some easing, with its debit balance falling to $2.83 billion from $3.27 billion, largely due to lower dividend and interest payments to foreign investors.
In contrast, the secondary income account, which includes diaspora remittances and personal transfers, declined to $5.57 billion from $6.21 billion recorded in the previous quarter.
The financial account remained in a net borrowing position of $2.51 billion, compared to $1.96 billion in Q4 2025, reflecting increased foreign liabilities despite stronger portfolio investment inflows.
“Foreign portfolio investment inflows rose to $6.03 billion in Q1 2026 from $5.27 billion in the previous quarter, partially offsetting a marginal decline in direct investment inflows,” the report noted.
Despite mixed signals across different components of the external accounts, Nigeria’s external reserves strengthened during the period, rising to $48.35 billion at the end of March 2026 from $45.75 billion in December 2025.
The data suggests an economy benefiting from improved export performance and stronger foreign inflows, even as pressures from services payments and remittance fluctuations continue to weigh on the broader external balance.