Nigeria recorded a current account surplus of $7.54 billion in the second quarter of 2026, representing a 68 percent increase from the previous quarter as stronger oil exports, remittances and services receipts improved the country's external position.

The sharp quarterly increase provides another positive signal for Nigeria's balance of payments at a time when policymakers are seeking to strengthen foreign exchange liquidity and maintain stability in the naira.

A current account surplus means that, during the period, the country received more from exports, income and transfers from abroad than it paid out through corresponding external transactions.

SURPLUS RISES SHARPLY

The $7.54 billion surplus represents a significant increase compared with the first quarter.

The improvement was supported by stronger receipts from oil exports, diaspora remittances and services.

Oil remains an important source of foreign currency for Nigeria, meaning changes in export volumes and international crude prices can have a substantial effect on the country's external accounts.

Remittances from Nigerians living abroad also provide an important source of foreign currency inflows.

STRONGER EXTERNAL POSITION

A larger current account surplus can strengthen Nigeria's external position by improving the country's capacity to meet international payment obligations and increasing the availability of foreign currency.

That is particularly significant for Nigeria after several years of severe foreign exchange shortages and pressure on the naira.

The Central Bank of Nigeria has introduced a series of reforms aimed at creating a more transparent and market driven foreign exchange system.

The CBN has also taken measures to improve remittance flows and foreign exchange liquidity.

POTENTIAL SUPPORT FOR THE NAIRA

A stronger current account position could provide additional support for foreign exchange stability if higher export earnings and other inflows translate into greater dollar liquidity in Nigeria's financial system.

However, a current account surplus does not automatically guarantee that the naira will appreciate.

Exchange rate movements are also influenced by investor confidence, capital flows, foreign exchange demand, inflation, monetary policy and intervention by the central bank.

Nigeria's currency has faced significant pressure in recent years following major changes to the country's foreign exchange system.

OIL EXPORTS REMAIN IMPORTANT

The latest figures again highlight the importance of Nigeria's energy sector to its external finances.

Higher oil export receipts can increase the supply of foreign currency entering the economy and improve the trade balance.

Nigeria has also been seeking to expand non oil exports and reduce its dependence on crude petroleum as the dominant source of export earnings.

Growth in refined petroleum exports and other manufactured and agricultural exports could further diversify foreign exchange earnings over time.

REMITTANCES PROVIDE ADDITIONAL SUPPORT

Diaspora remittances remain another important part of Nigeria's external accounts.

The Central Bank has introduced measures intended to deepen remittance flows and improve transparency in international money transfers.

In March 2026, the CBN announced additional requirements for international money transfer operators and authorized dealer banks as part of efforts to improve the functioning of the remittance market.

The central bank expects steady remittance inflows to remain an important contributor to Nigeria's external balance during 2026.

OUTLOOK REMAINS TIED TO GLOBAL CONDITIONS

Despite the stronger second quarter performance, Nigeria's external outlook remains exposed to developments in international energy markets and the wider global economy.

Changes in crude oil prices, domestic oil production, import demand and international capital flows could influence the country's balance of payments in subsequent quarters.

For policymakers, sustaining the improvement will depend on maintaining export earnings while attracting investment, increasing remittance flows and ensuring sufficient foreign exchange liquidity.

The $7.54 billion second quarter surplus nevertheless represents a substantial improvement in Nigeria's external accounts and could provide additional support for efforts to stabilize the foreign exchange market.