Nigeria recorded a balance of payments (BOP) surplus of $2.38 billion in the first quarter of 2026, representing a decline from the $2.67 billion surplus posted in the preceding quarter, according to the latest data released by the Central Bank of Nigeria (CBN).
The balance of payments measures all economic transactions between a country and the rest of the world over a given period and serves as a key indicator of external sector performance.
Although the overall surplus narrowed during the period under review, the country’s current account position strengthened significantly, buoyed by increased earnings from crude oil, natural gas and refined petroleum exports, as well as a sharp reduction in fuel import bills.
According to the apex bank, Nigeria’s current account surplus rose to $4.98 billion in the first quarter, up from $1.40 billion recorded in the fourth quarter of 2025 and $3.41 billion in the corresponding period of 2025.
The improvement was largely driven by stronger export receipts from the oil and gas sector. Crude oil export earnings increased by 19.8 per cent to $8.11 billion from $6.77 billion in the previous quarter, while gas exports rose by 13 per cent to $2.53 billion.
Refined petroleum product exports also recorded notable growth, rising by 20.3 per cent to $2.37 billion during the period.
At the same time, the country’s dependence on imported refined petroleum products continued to decline sharply. Imports of refined petroleum products dropped by 87.5 per cent to $310 million in the first quarter from $2.48 billion in the final quarter of 2025.
The development contributed significantly to an improvement in Nigeria’s trade position, with the goods account surplus climbing to $5.95 billion from $1.77 billion in the preceding quarter.
Overall exports rose to $15.49 billion during the quarter, compared to $13.36 billion recorded between October and December 2025. Non-oil exports also improved modestly, increasing by 4.62 per cent to $2.49 billion.
On the import side, total imports fell to $9.54 billion from $11.59 billion in the previous quarter, reflecting lower demand for imported fuel products.
However, crude oil imports moved in the opposite direction, rising sharply by more than 300 per cent to $1.39 billion from $340 million recorded in the fourth quarter of 2025. Non-oil imports declined by 10.49 per cent to $7.85 billion.
The report also showed that the services account remained under pressure, with net outflows increasing to $3.71 billion from $3.32 billion in the previous quarter. The rise was attributed mainly to higher spending on travel and business services abroad.
Similarly, the secondary income account, which captures diaspora remittances and personal transfers, declined to $5.57 billion from $6.21 billion recorded in the preceding quarter.
On a positive note, the deficit in the primary income account narrowed to $2.83 billion from $3.27 billion, reflecting lower dividend and interest payments to foreign investors.
The CBN further reported that Nigeria’s financial account remained in a net borrowing position, recording net borrowing of $2.51 billion during the quarter, compared with $1.96 billion in the previous quarter.
This was largely supported by stronger foreign portfolio investment inflows, which increased to $6.03 billion from $5.27 billion in the fourth quarter of 2025. The rise in portfolio investments helped offset a slight decline in direct investment inflows.
The country’s external reserves also recorded significant growth during the period. Nigeria’s foreign reserves rose to $48.35 billion at the end of March 2026, up from $45.75 billion at the close of December 2025, reflecting improved foreign exchange earnings and stronger external sector fundamentals.