- The surplus that Nigeria has with the IMF is $222 million higher than what was recorded in 2023
- The improvement is due to the country’s growing gross national savings and investment
- The IMF also submits that the surplus is a good sign of Nigeria’s economic growth
The World Economic Outlook Database of the International Monetary Fund (IMF) has shown that Nigeria’s current account balance recorded a surplus of $1.432 billion in 2024.
The report, released on Wednesday, June 5, shows the figure increased by $222 million from the $1.21 billion surplus recorded on the Federal Government’s account in 2023.
The improvement in Nigeria’s current account is attributed to growing gross national savings, which has increased from 24.61 percent in 2023 to 26.32 per cent of the Gross Domestic Product (GDP), and gross national investment, which also rose from 24.28 per cent in 2023 to 25.75 percent of GDP.
Surplus suggests a favourable economy for Nigeria
The IMF’s report reflects a positive outlook for Nigeria and a sign that the country’s economy is growing with increasing investment and savings.
A surplus record in the current account balance of the country shows a favourable trade balance and income, which is a boost to the country’s economic stability.
The increase in savings shows a growing amount of disposable income and a move toward a more savings-oriented economy, while the increase in investment shows a boost in economic activity with a tendency for future growth.
What is a current account balance
A country’s current account balance represents the balance between exports and imports, income earned and paid, and asset increases or decreases. It is also a comprehensive overview of a country’s international economic transactions in terms of combined total trade balance, net income, direct transfers and asset income.
A positive account balance shows a net lending position, while a negative balance shows a net borrowing position.
Government's cost-saving efforts yielding results
In an interview, economist Olorounfemi Idris said the positive account balance portrays good returns on the country’s economic diversification efforts.
“This surplus in the current account balance suggests a favourable trade balance and income situation, further bolstering Nigeria’s economic stability.
“The country’s efforts to diversify its economy and improve economic fundamentals have yielded positive results, attracting investors and boosting economic activity,” he said.
Nigeria’s economic growth and stability will spur growth and stability in the African continent as well as the West African region.
