By David Akinmola
Nigeria recorded a sharp improvement in its external position in the first quarter of 2026, with the current account surplus rising by 256 per cent to $4.98 billion, underscoring stronger foreign exchange earnings and an improvement in the country’s trade balance.
The latest development signals growing resilience in the external sector amid ongoing economic reforms, supported by higher export receipts, improved remittance inflows and moderating import demand.
The current account, which measures the country’s transactions with the rest of the world in goods, services, income and transfers, is a key indicator of external sector health. A surplus indicates that foreign exchange inflows exceeded outflows during the period.
The significant increase in the surplus comes amid improving trade performance, with recent data showing a substantial rise in Nigeria’s merchandise trade surplus in the first quarter as exports continued to outpace imports. Higher crude oil exports and a decline in import spending contributed to the positive outcome.
Analysts said the stronger current account position could provide additional support for the naira, boost external reserves and improve investor confidence in the economy, particularly at a time when authorities are seeking to attract foreign capital and stabilise macroeconomic conditions.
The development also reflects the impact of ongoing reforms aimed at strengthening foreign exchange liquidity and improving the country’s balance of payments position.
Despite the positive performance, economists cautioned that sustaining the surplus would depend on continued growth in export earnings, increased non-oil exports and stronger capital inflows, amid uncertainties in the global economy and volatility in oil prices.
A sustained current account surplus is widely regarded as a positive signal for economic stability, as it enhances a country’s capacity to meet external obligations, supports reserve accumulation and reduces vulnerability to external shocks.
