Nigeria posted a significantly stronger external position in the first quarter of 2026, with the current account recording a surplus of $4.98 billion a massive 255.71% increase from the $1.40 billion surplus in the fourth quarter of 2025.
The Central Bank of Nigeria (CBN) provisional Balance of Payments data also showed the surplus was 46.04% higher than the $3.41 billion recorded in the first quarter of 2025, highlighting a notable improvement in the country’s external balances.
Goods Account Leads the Surge
The sharp rise was primarily driven by a robust goods account, which expanded to a surplus of $5.95 billion in Q1 2026 from $1.77 billion in the previous quarter.
Total exports grew to $15.49 billion, supported by higher earnings from crude oil ($8.11 billion), gas ($2.53 billion), and refined petroleum products ($2.37 billion). Meanwhile, total imports fell to $9.54 billion, largely due to a dramatic 87.5% reduction in refined petroleum product imports to just $0.31 billion.
Mixed Performance in Other Areas
Other components of the current account showed varied results:
– The services account deficit widened to $3.71 billion.
– The primary income deficit narrowed to $2.83 billion.
– Secondary income (mainly remittances) declined to $5.57 billion from $6.21 billion in the fourth quarter.
The financial account recorded a net borrowing position of $2.51 billion, with strong portfolio investment inflows of $6.03 billion, indicating sustained foreign investor appetite for Nigerian assets.
Positive External Position
Nigeria’s overall balance of payments posted a surplus of $2.38 billion during the quarter. External reserves also strengthened, rising to $48.35 billion by the end of March 2026, up from $45.75 billion at the end of December 2025.
The latest figures reflect improved trade performance, particularly higher oil and gas exports combined with lower fuel imports. However, analysts caution that sustaining this momentum will require continued diversification of export earnings, better management of remittance flows, and addressing structural weaknesses in the services account.
The strong Q1 performance provides a positive signal for Nigeria’s external sector, even as the country continues to navigate broader macroeconomic challenges.
