Nigeria recorded a sharp improvement in its external position in the first quarter of 2026, with the current account surplus rising to $4.98 billion, driven largely by stronger crude oil, gas and refined petroleum exports as well as a significant drop in fuel imports.
Figures released by the Central Bank of Nigeria (CBN) in its Q1 2026 Balance of Payments report showed that the surplus surged from $1.40 billion recorded in the fourth quarter of 2025 and exceeded the $3.41 billion posted in the corresponding period last year.
The latest performance represents a quarter-on-quarter increase of 255.7 per cent and a year-on-year rise of 46 per cent, reflecting the positive impact of improved export earnings and reduced import dependence.
According to the apex bank, higher receipts from crude oil, natural gas and refined petroleum product exports, coupled with lower payments for imported fuel and a reduction in foreign investment income outflows, were key drivers of the strong current account position.
Crude oil exports climbed to $8.11 billion during the review period from $6.77 billion in the preceding quarter, while gas exports rose to $2.53 billion from $2.24 billion. Earnings from refined petroleum exports also increased to $2.37 billion, compared to $1.97 billion in the final quarter of 2025.
A major boost came from the sharp reduction in refined petroleum imports, which fell by 87.5 per cent to $310 million from $2.48 billion recorded in the previous quarter, underscoring the growing impact of domestic refining capacity on Nigeria’s trade profile.
The country’s goods account, which accounts for the largest share of the current account, posted a surplus of $5.95 billion, a significant improvement from the $1.77 billion surplus recorded in the fourth quarter of 2025 and the $3.35 billion achieved in the corresponding period of last year.
The stronger trade position was supported by increased export receipts and lower import bills. Total exports rose to $15.49 billion from $13.36 billion, while imports declined to $9.54 billion from $11.59 billion in the previous quarter.
Beyond oil and gas, non-oil exports recorded modest growth, increasing by 4.6 per cent to $2.49 billion. On the import side, non-oil imports declined by 10.5 per cent to $7.85 billion. However, crude oil imports rose sharply to $1.39 billion from $340 million in the preceding quarter.
Despite the robust trade performance, the services account continued to weigh on the current account, with net outflows rising to $3.71 billion from $3.32 billion. The increase was attributed mainly to higher spending on travel and business-related services abroad.
The primary income deficit, which captures dividend and interest payments to foreign investors, narrowed to $2.83 billion from $3.27 billion, reflecting lower remittances of investment income by foreign-owned businesses.
Meanwhile, the secondary income account, largely supported by diaspora remittances, recorded a lower surplus of $5.57 billion compared to $6.21 billion in the previous quarter. Personal remittances from Nigerians abroad declined to $5.30 billion from $5.72 billion.
On the capital and financial account side, Nigeria remained a net borrower, with net borrowing rising to $2.51 billion from $1.96 billion in the fourth quarter of 2025.
Portfolio investment inflows strengthened to $6.03 billion from $5.27 billion, indicating sustained foreign investor interest in Nigerian financial assets. Direct investment inflows, however, eased slightly to $1.03 billion from $1.11 billion.
The report also showed that Nigerian investors increased investments abroad, recording outflows of $200 million under direct investments and $260 million under portfolio investments.
Overall, Nigeria posted a balance of payments surplus of $2.38 billion during the quarter, slightly below the $2.67 billion surplus recorded in the preceding quarter.
The country’s external reserves strengthened during the period, rising to $48.35 billion at the end of March 2026 from $45.75 billion at the close of December 2025, providing a stronger buffer against external shocks.
However, the report highlighted concerns over the widening net errors and omissions position, which deteriorated to a deficit of $7.49 billion from $3.36 billion in the previous quarter.
The latest balance of payments data underscores the growing role of increased oil production and domestic refining in improving Nigeria’s external finances. Analysts say the continued expansion of petroleum exports and reduced reliance on imported fuel could further strengthen the country’s external sector outlook, despite pressures from declining remittance inflows and rising services-related payments.