Nigeria’s Current Account Balance Shoots Up By $1.43bn – IMF

Posted by African Examiner Business News, Latest Headlines Wednesday, June 5th, 2024

(AFRICAN EXAMINER) – Nigeria’s current account balance has experienced a surplus of $1.432bn in 2024, according to a report by the International Monetary Fund (IMF).

The report, ‘World Economic Outlook Database’ seen by Channels Television on Wednesday, noted that the increase in the Federal Government’s account for the period, was an improvement from the $1.21bn surplus recorded in 2023.

The improvement was attributed to the country’s growing gross national savings and investment.

In 2024, Nigeria’s gross national savings increased to 26.32 per cent of Gross Domestic Product, up from 24.61 per cent in 2023. Total investment also rose to 25.75 per cent of GDP in 2024, compared to 24.28 per cent in 2023, according to the report.

A country’s current account balance represents the combined total of its trade balance, net income, direct transfers, and asset income, providing a comprehensive picture of its international economic transactions.

It reflects the balance between exports and imports, income earned and paid, and asset increases or decreases.

A positive balance indicates a net lending position, while a negative balance indicates a net borrowing position.

The IMF data provides a positive outlook for Nigeria’s economic growth and stability, indicating a growing economy with increasing investment and savings. This trend is expected to continue, driving economic growth and stability in the region.

The development comes as the country grapples with the aftermath of subsidies removal by President Bola Tinubu in May, 2023.

Electricity tariffs, food prices, transportation prices, house rents, and inflation rates have since skyrocketed, leading to the duo of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) declaring a nationwide industrial strike on Monday.

The unions are asking for a living wage of N494,000 monthly, higher than the current N30,000 being paid by the Federal Government.

However, FG has since shown interest in shifting grounds, and settling for a wage higher than N60,000 it earlier offered.

Nigeria’s inflation rate currently stands at 33.69 per cent, according to data from the National Bureau of Statistics (NBS).