Nigeria Records $7.54 Billion Current Account Surplus in Q2 Driven by Surging Exports

Nigeria’s external balance of payments demonstrated extraordinary resilience in the second quarter of the fiscal year, with the current account recording an impressive surplus of $7.54 billion—representing a 68 percent expansion compared to the preceding quarter. Official external sector statistics released by the Central Bank of Nigeria demonstrate that structural changes in trade flows are beginning to yield tangible macro-economic dividends.

​Dynamics Behind the Trade Expansion

​The substantial surplus was primarily propelled by two coinciding developments:

​Dramatic Reductions in Import Bills: The domestic ramping of locally refined petroleum products drastically curtailed the foreign exchange spent on importing premium motor spirit (PMS) and automotive gas oil (AGO).
​Expansion of Non-Oil Commodities: Agricultural produce, solid mineral exports, and processed light-manufactured goods recorded significant volume increases through upgraded cargo terminals in Lagos, Lekki, and Onne.

​Total merchandise export earnings grew consistently over the quarter, supported by stable crude oil output and higher international prices for cash crops such as cocoa, cashew, and sesame seeds. Concurrently, service sector outflows related to overseas tuition and medical travel stabilized as domestic alternatives gained traction.

​Implications for Foreign Exchange Reserves

​The positive current account trajectory provides vital backing for Nigeria’s gross foreign exchange reserves. Financial analysts point out that maintaining a persistent surplus will shield the Naira from international market shocks, lower debt-to-export vulnerabilities, and reinforce investor appetite for domestic sovereign sovereign debt issuances.