Nigeria’s external financial position strengthened significantly in the second quarter of 2026, driven by a sharp rise in energy export receipts and robust diaspora remittances.
Provisional balance of payments data released by the Central Bank of Nigeria (CBN) shows the nation’s current account surplus expanded by 67.9 per cent to $7.54 billion in the three months through June, up from $4.49 billion recorded in the first quarter of the year.
The strong performance reflects broader macroeconomic stabilization, as higher revenues from crude oil, natural gas, and domestically refined petroleum products helped widen the country’s overall trade surplus. Foreign exchange inflows from overseas workers also provided a vital buffer, pushing Nigeria’s foreign reserves past $51.39 billion by the end of June.
The expansion in the current account was largely anchored by the goods trade account, where the total trade surplus surged nearly 70 per cent to $10.12 billion.
Total export earnings grew to $20.08 billion, buoyed by a broad-based recovery in the energy sector.
The trade balance which is a record of all financial transactions made between a country and the rest of the world over a specific period was further aided by a reduction in foreign crude imports, which dropped to $580 million in Q2 from $1.39 billion in the preceding quarter as local processing capacity absorbed a larger share of domestic feedstock.
Beyond trade in physical goods, secondary income transfers—primarily personal remittances sent home by Nigerians living in the diaspora—rose 9.8 per cent quarter-on-quarter to $5.82 billion. The consistent inflow of foreign capital helped offset widening deficits in the services and primary income accounts.
Net services outflows expanded to $4.67 billion, driven by increased payments for international transport, travel, and business support services. Simultaneously, the primary income deficit widened to $4.20 billion due to higher interest and dividend repatriations to non-resident investors.
In the financial account, Nigeria recorded a net lending position of $1.74 billion, reversing a net borrowing position of $2.03 billion in the first quarter. Foreign portfolio investment (FPI) inflows rose to $7.09 billion, while foreign direct investment (FDI) ticked up to $1.15 billion.
Analyzing the quarterly figures in its official report, the Central Bank of Nigeria highlighted the combined impact of structural export gains and external capital.
“The improvement in the current account surplus was largely driven by a wider goods account surplus, reflecting higher export receipts from crude oil, gas and refined petroleum products, alongside sustained remittance inflows,” the CBN stated in its provisional report.
The $3.51 billion overall balance of payments surplus for the quarter has pushed Nigeria’s external reserves past the central bank’s full-year 2026 target of $51.04 billion. The stronger buffer provides the apex bank with increased headroom to stabilize the local foreign exchange market and service external obligations.
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