Nigeria’s Current Account Surplus Jumps 256% to $4.98bn in Q1 2026

ABUJA — Nigeria’s current account surplus rose by 255.7 per cent quarter-on-quarter to $4.98bn in the first quarter of 2026, driven by higher earnings from crude oil, gas and refined petroleum exports, as well as a sharp decline in petroleum product imports, according to the Central Bank of Nigeria (CBN).

The apex bank, in its Q1 2026 Balance of Payments Highlights released on Wednesday, said the current account surplus increased significantly from $1.40bn recorded in the fourth quarter of 2025 and was also higher than the $3.41bn posted in the corresponding period of 2025.

The CBN attributed the stronger external position to rising export receipts from the oil and gas sector, increased refined petroleum exports and lower import bills for petroleum products, alongside reduced net outflows on the primary income account.

“Provisional balance of payments statistics for Q1 2026 show a current account surplus of $4.98bn, which was higher than the $1.40bn and $3.41bn recorded in the preceding quarter (Q4 2025) and corresponding period (Q1 2025), respectively,” the report stated.

Crude oil export earnings rose to $8.11bn in the first quarter from $6.77bn in the preceding quarter, while gas exports increased to $2.53bn from $2.24bn. Refined petroleum product exports also climbed to $2.37bn from $1.97bn during the same period.

At the same time, imports of refined petroleum products fell sharply by 87.5 per cent to $310m from $2.48bn recorded in the fourth quarter of 2025.

Goods Trade Surplus Strengthens

The goods account, the largest component of the current account, recorded a surplus of $5.95bn in Q1 2026, compared with $1.77bn in the preceding quarter and $3.35bn in the corresponding quarter of 2025.

“The goods account (a major sub-account in the current account) recorded a significantly higher surplus of $5.95bn in Q1 2026, as against $1.77bn and $3.35bn recorded in the preceding quarter and corresponding period of 2025,” the CBN said.

The stronger performance was supported by a rise in total exports to $15.49bn from $13.36bn in Q4 2025, driven largely by higher crude oil and gas shipments.

Total imports, however, declined to $9.54bn from $11.59bn, reflecting lower purchases of refined petroleum products and non-oil goods.

Crude oil exports increased by 19.8 per cent quarter-on-quarter, while gas exports rose by 13 per cent. Refined petroleum exports expanded by 20.3 per cent, while non-oil exports edged up by 4.6 per cent to $2.49bn.

On the import side, non-oil imports fell by 10.5 per cent to $7.85bn. However, crude oil imports increased to $1.39bn from $340m in the previous quarter.

Services, Remittances Show Mixed Performance

The report showed that net outflows on the services account widened to $3.71bn from $3.32bn in the preceding quarter, mainly due to 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 bank stated.

Meanwhile, the primary income deficit narrowed to $2.83bn from $3.27bn, reflecting lower dividend and interest payments to foreign investors.

According to the CBN, the improvement was largely driven by a reduction in payments to non-resident investors, particularly direct investors.

The secondary income account surplus, which largely captures remittance inflows, declined to $5.57bn from $6.21bn in Q4 2025.

Personal remittances from Nigerians in the diaspora also fell to $5.30bn from $5.72bn recorded in the preceding quarter.

Portfolio Inflows Rise Despite Financial Account Deficit

Despite the strong current account performance, the financial account remained in a net borrowing position.

The report showed 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 their overseas investments, recording outflows of $200m under direct investment assets and $260m under portfolio investment assets.

The CBN said developments in the financial account reflected stronger portfolio inflows, a slight decline in direct investment, reserve accumulation and increased acquisition of foreign portfolio assets by residents.

External Reserves Rise to $48.35bn

Nigeria recorded an overall balance of payments surplus of $2.38bn during the quarter, although this was lower than the $2.67bn surplus achieved in Q4 2025.

The country’s external reserves rose to $48.35bn at the end of March 2026, up from $45.75bn at the end of December 2025.

However, the report highlighted a deterioration in net errors and omissions, which widened to a negative $7.49bn from a negative $3.36bn in the preceding quarter.

The latest figures suggest that higher oil production, increased petroleum exports and reduced reliance on imported fuel continued to strengthen Nigeria’s external position during the first quarter of 2026, helping offset weaker remittance inflows and rising service-related outflows.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.