Nigeria’s current account surplus surged by 255.7 per cent quarter-on-quarter to $4.98bn in the first quarter of 2026, driven by stronger crude oil, gas and refined petroleum exports, as well as a sharp decline in petroleum product imports, according to the latest Balance of Payments report released by the Central Bank of Nigeria (CBN).
The apex bank disclosed in its Q1 2026 Balance of Payments Highlights that the current account surplus rose significantly from $1.40bn recorded in the fourth quarter of 2025 and exceeded the $3.41bn posted in the corresponding period of 2025.
According to the report, the surplus expanded by 255.71 per cent compared to the previous quarter and was 46.04 per cent higher than the level recorded a year earlier.
The CBN attributed the improvement to increased earnings from crude oil, gas and refined petroleum exports, alongside a substantial reduction in refined petroleum product imports and lower net out-payments on the primary income account.
Crude oil export earnings increased to $8.11bn in Q1 2026 from $6.77bn in the preceding quarter, while gas exports rose to $2.53bn from $2.24bn. Refined petroleum product exports also climbed to $2.37bn from $1.97bn during the same period.
In contrast, refined petroleum product imports fell sharply by 87.5 per cent to $0.31bn from $2.48bn recorded in the fourth quarter of 2025, reflecting reduced dependence on imported fuel.
The report showed that the goods account, which remains the largest component of the current account, recorded a surplus of $5.95bn in Q1 2026, compared with $1.77bn in Q4 2025 and $3.35bn in the first quarter of 2025.
According to the CBN, the stronger goods account position was supported by higher export earnings and declining imports.
Total exports increased to $15.49bn from $13.36bn in the previous quarter, largely due to stronger crude oil and gas exports. Meanwhile, total imports declined to $9.54bn from $11.59bn, reflecting lower imports of refined petroleum products and non-oil goods.
Crude oil exports rose by 19.79 per cent quarter-on-quarter to $8.11bn, while gas exports increased by 12.95 per cent to $2.53bn. Refined petroleum product exports recorded a 20.3 per cent increase to $2.37bn, while non-oil exports edged up by 4.62 per cent to $2.49bn.
On the import side, non-oil imports declined by 10.49 per cent to $7.85bn. However, crude oil imports increased to $1.39bn from $0.34bn in the preceding quarter.
The report revealed mixed performances across other current account components.
Net out-payments on services rose to $3.71bn from $3.32bn, driven mainly by increased spending on travel and other business services.
“The increase in net out-payments for services was largely due to increases in net debits in travel and other business services,” the CBN stated.
The primary income deficit narrowed to $2.83bn from $3.27bn, reflecting lower dividend and interest payments to foreign investors.
According to the report, the improvement was largely due to reduced out-payments on investments held by non-residents, particularly direct investors.
However, the secondary income account surplus, which captures remittance inflows, declined to $5.57bn from $6.21bn in the previous quarter.
Personal transfers from Nigerians in the diaspora fell to $5.30bn from $5.72bn recorded in Q4 2025, indicating weaker remittance inflows during the period.
Despite the stronger current account position, the financial account remained in a net borrowing position.
The report showed that net borrowing increased to $2.51bn in Q1 2026 from $1.96bn in the previous quarter.
Portfolio investment inflows strengthened to $6.03bn from $5.27bn, while direct investment inflows moderated slightly to $1.03bn from $1.11bn.
Nigerian investors also increased overseas investments, recording outflows of $0.20bn under direct investment assets and $0.26bn under portfolio assets.
The CBN attributed developments in the financial account to stronger portfolio investment inflows, a marginal decline in direct investment inflows, rising external reserves and increased acquisition of foreign portfolio assets by residents.
Further analysis showed that Nigeria recorded an overall balance of payments surplus of $2.38bn in the first quarter of 2026, slightly lower than the $2.67bn surplus achieved in the preceding quarter.
Nevertheless, the country’s external reserves rose significantly to $48.35bn at the end of March 2026 from $45.75bn at the end of December 2025.
The report also highlighted a deterioration in net errors and omissions, which widened to negative $7.49bn from negative $3.36bn in the previous quarter.
The latest data suggests that rising oil production, stronger petroleum exports and reduced dependence on imported fuel continue to strengthen Nigeria’s external sector performance, helping to offset weaker remittance inflows and higher service-related outflows.
Analysts say sustaining these gains will depend on continued improvements in oil output, export diversification and efforts to maintain stability in the country’s external reserves position.
