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According to a report by the International Monetary Fund (IMF), Nigeria’s current account balance experienced a surplus of $1.432 billion in 2024. This marks an improvement from the $1.21 billion surplus recorded in 2023.

The enhancement in the current account balance is attributed to the country’s increasing gross national savings and investment. In 2024, Nigeria’s gross national savings rose to 26.32% of Gross Domestic Product (GDP), up from 24.61% in 2023. Additionally, total investment increased to 25.75% of GDP in 2024, compared to 24.28% in the previous year.

A country’s current account balance reflects the total of its trade balance, net income, direct transfers, and asset income, providing a comprehensive view of its international economic transactions. It indicates the balance between exports and imports, income earned and paid, and changes in assets. A positive balance signifies a net lending position, while a negative balance signifies a net borrowing position.

The IMF data presents a positive outlook for Nigeria’s economic growth and stability, highlighting an expanding economy with rising investment and savings. This positive trend is anticipated to continue, driving further economic growth and stability in the region.

This development occurs as Nigeria deals with the consequences of subsidy removal by President Bola Tinubu in May 2023. The removal of subsidies has led to increased electricity tariffs, food prices, transportation costs, house rents, and inflation rates. Consequently, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have declared a nationwide industrial strike starting Monday.

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Theresa Anyanwu

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