ABUJA: Nigeria’s external sector recorded a strong performance in the first quarter of 2026, with the country’s current account surplus soaring to $4.98 billion, driven by higher crude oil and gas exports and a sharp decline in fuel import costs.
The latest Balance of Payments report released by the Central Bank of Nigeria (CBN) showed that the surplus represented a 255.7 per cent increase from the $1.40 billion recorded in the fourth quarter of 2025 and surpassed the $3.41 billion posted in the corresponding period last year.
According to the apex bank, stronger earnings from crude oil, gas and refined petroleum exports, combined with lower fuel import bills and reduced primary income payments abroad, were responsible for the improved performance.
Provisional balance of payments statistics for Q1 2026 show a current account surplus of $4.98 billion, which was higher than the $1.40 billion and $3.41 billion recorded in the preceding quarter and corresponding period of 2025 respectively,” the CBN stated.
Data from the report showed that crude oil export earnings climbed to $8.11 billion in the first quarter, up from $6.77 billion in the previous quarter.
Gas exports also rose to $2.53 billion from $2.24 billion, while refined petroleum exports increased to $2.37 billion compared with $1.97 billion in Q4 2025.
Non-oil exports recorded modest growth, rising by 4.62 per cent to $2.49 billion.
Overall exports expanded to $15.49 billion from $13.36 billion, supported largely by increased oil and gas sales.
One of the biggest contributors to the stronger external balance was the sharp decline in spending on imported refined petroleum products.
According to the report, fuel imports plunged by 87.5 per cent to $310 million from $2.48 billion recorded in the previous quarter.
Non-oil imports also fell by 10.49 per cent to $7.85 billion, reducing overall imports to $9.54 billion from $11.59 billion.
However, crude oil imports increased significantly from $340 million to $1.39 billion during the period.
The strong export performance translated into a substantial increase in Nigeria’s goods account surplus.
The CBN disclosed that the goods account posted a surplus of $5.95 billion in Q1 2026, compared with $1.77 billion in the preceding quarter and $3.35 billion in the same period last year.
The goods account recorded a significantly higher surplus of $5.95 billion in Q1 2026,” the apex bank noted.
Despite the impressive trade performance, inflows under the secondary income account weakened.
The surplus in the account fell to $5.57 billion from $6.21 billion, while personal remittances from Nigerians abroad dropped to $5.30 billion from $5.72 billion.
Similarly, net payments for services increased to $3.71 billion from $3.32 billion, mainly due to higher spending on travel and business services.
The primary income account remained in deficit, although the shortfall narrowed to $2.83 billion from $3.27 billion because of lower dividend and interest payments to foreign investors
The financial account remained in deficit, with net borrowing increasing to $2.51 billion from $1.96 billion in the previous quarter.
However, foreign portfolio investment inflows strengthened to $6.03 billion from $5.27 billion, while direct investment inflows eased slightly to $1.03 billion from $1.11 billion.
The CBN attributed developments in the financial account to stronger portfolio investments, reserve accumulation and increased overseas investment activities by Nigerian residents.
Nigeria posted an overall balance of payments surplus of $2.38 billion during the first quarter, slightly below the $2.67 billion achieved in Q4 2025.
As a result, the country’s external reserves rose significantly from $45.75 billion at the end of December 2025 to $48.35 billion by March 2026.
However, the report highlighted a growing concern over net errors and omissions, which widened to a negative $7.49 billion compared to a negative $3.36 billion in the previous quarter.
The latest figures suggest that higher oil production, increased petroleum export earnings and reduced dependence on imported fuel helped strengthen Nigeria’s external position, offsetting weaker diaspora remittances and rising service-related payments abroad.
