Nigeria’s current account balance has achieved a notable surplus of $1.432 billion in 2024, as reported by the International Monetary Fund (IMF). This marks an improvement from the $1.21 billion surplus recorded in 2023, highlighting a positive economic trajectory for the country.
The IMF’s ‘World Economic Outlook Database’, accessed by Channels Television on Wednesday, attributes this growth to Nigeria’s increasing gross national savings and investment. In 2024, Nigeria’s gross national savings rose to 26.32% of Gross Domestic Product (GDP), compared to 24.61% in 2023. Similarly, total investment increased to 25.75% of GDP, up from 24.28% in the previous year.
A country’s current account balance, which includes its trade balance, net income, direct transfers, and asset income, provides a comprehensive view of its international economic transactions. A positive balance indicates that the country is a net lender, while a negative balance signifies a net borrowing position.
The IMF’s data presents an optimistic outlook for Nigeria’s economic growth and stability, driven by increasing investment and savings. This trend is expected to sustain, fostering further economic development and stability in the region.
This economic improvement comes amid the challenges following the removal of subsidies by President Bola Tinubu in May 2023. The removal has led to significant increases in electricity tariffs, food prices, transportation costs, house rents, and inflation rates, which currently stand at 33.69%, according to the National Bureau of Statistics (NBS).
In response to these economic pressures, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have called for a nationwide industrial strike, demanding a substantial increase in the minimum wage to N494,000 monthly, far above the current N30,000. The Federal Government has shown willingness to negotiate, offering a wage higher than the previously proposed N60,000.
Despite these socio-economic challenges, the positive movement in the current account balance signifies robust economic health and an ability to attract and sustain investment. The IMF’s report underscores the potential for continued economic growth, provided that the country navigates its internal challenges effectively.
The improvement in Nigeria’s current account balance reflects a strong economic position, driven by prudent fiscal policies and an increasing focus on savings and investment. As the country continues to manage its economic and social challenges, these positive indicators provide a foundation for long-term stability and growth.
