Nigeria’s Current Account Surplus Jumps 67.9% to $7.54 Billion in Q2 2026

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Nigeria’s current account surplus rose by 67.9% to $7.54 billion in the second quarter of 2026, from $4.49 billion in the preceding quarter, as stronger export receipts and higher diaspora remittances boosted the country’s external position.

The Q2 surplus was also 45.8% higher than the $5.17 billion recorded in the corresponding period of 2025.

The improvement came as Nigeria’s goods account recorded a wider surplus, although this was partly offset by larger net outflows from the services and primary income accounts.

The latest figures point to a stronger external balance, with Nigeria earning more foreign exchange through goods exports and transfers than it spent across the current-account components during the period.

What you should know

The current account is one of the major components of a country’s balance of payments.

It broadly captures transactions involving goods, services, primary income and secondary income between Nigeria and the rest of the world.

A current-account surplus means the country recorded more inflows than outflows across these transactions during the period.

Nigeria’s $7.54 billion surplus in Q2 therefore indicates that the country’s external earnings exceeded its current external spending by that amount.

The increase from $4.49 billion in Q1 represents an additional $3.05 billion in quarterly surplus.

Goods exports remain a major driver

The wider goods-account surplus was an important contributor to the improvement.

Nigeria’s goods account primarily reflects merchandise exports and imports.

When export receipts rise faster than import payments, the goods balance improves.

For Nigeria, this remains closely connected to crude oil and gas earnings, although the country’s non-oil export sector is becoming increasingly relevant as agricultural products, fertilisers, solid minerals and other commodities generate additional foreign-exchange receipts.

A stronger goods surplus therefore provides a more direct channel through which increased export earnings can improve the country’s external position.

Diaspora remittances are becoming increasingly important

Remittances from Nigerians living abroad also support the current account through the secondary-income component.

These inflows provide foreign exchange to households and businesses and can help strengthen Nigeria’s external balance.

Unlike commodity exports, remittances are not directly tied to oil production.

This makes sustained growth in formal remittance inflows particularly important for diversifying Nigeria’s sources of foreign exchange.

Higher remittances can also increase household purchasing power, although their effect on the current account ultimately depends on how much of the money is spent on imported goods and services.

Services continue to create an outflow

The improvement in the current account does not mean every component of Nigeria’s external balance improved.

The services account recorded a larger net outflow during the quarter.

Services include transactions such as transportation, travel, financial services, insurance and other services traded internationally.

Nigeria can earn foreign exchange from exporting services, but it also spends foreign exchange on services purchased from other countries.

A larger services deficit therefore offsets part of the gains from the goods surplus.

Primary income outflows also increased

The primary income account also recorded a larger net outflow.

Primary income generally covers income generated from cross-border ownership of assets and investments, including items such as interest, dividends and other investment-related income.

For Nigeria, larger outflows can occur when foreign investors or companies operating in the country repatriate investment income abroad.

This means a country can record strong export earnings while still experiencing significant foreign-exchange outflows through investment income.

A surplus can support the external position

A stronger current account generally reduces pressure on a country’s external financing requirements.

When a country consistently earns more from its current international transactions than it spends, it has a stronger underlying external position.

For Nigeria, this can complement the accumulation of foreign-exchange reserves and help improve confidence in the country’s ability to meet international obligations.

However, the current-account balance and foreign-exchange reserves are not the same thing.

A current-account surplus describes a flow of transactions during a period, while reserves represent the stock of foreign assets held by the monetary authorities.

The surplus can support FX liquidity

Stronger export receipts and remittances can increase the supply of foreign exchange available to the economy.

When exporters and remittance recipients convert part of their foreign currency into naira, additional dollars can enter the formal FX market.

This can help improve liquidity and reduce some of the pressure created by demand for foreign currency.

However, the effect on the naira depends on several other factors, including imports, capital flows, monetary policy and the amount of foreign exchange actually entering the formal market.

A current-account surplus therefore does not automatically translate into a specific exchange rate.

The composition of the surplus matters

The headline $7.54 billion figure is encouraging from an external-balance perspective, but the composition of the surplus matters for its sustainability.

A surplus driven primarily by strong commodity prices can weaken if global prices fall.

Similarly, an improvement based on temporary export volumes may not persist if production declines.

A more resilient external position would come from a combination of:

Strong and stable oil production
Higher non-oil exports
Growing formal remittances
Lower dependence on imported goods
Expansion of domestic productive capacity
More competitive services exports

The more diversified these sources become, the less vulnerable Nigeria’s external position will be to a single shock.

Stronger exports can help reduce import dependence

Nigeria’s persistent dependence on imported manufactured products means a significant amount of foreign exchange continues to leave the country to finance imports.

A stronger goods surplus becomes more sustainable if increased export earnings are accompanied by greater domestic production.

This is particularly important for manufactured goods, food products, refined petroleum products and industrial inputs.

The objective is not necessarily to eliminate imports, but to increase the country’s capacity to earn enough foreign exchange to comfortably finance essential imports.

What investors should watch

Several indicators will determine whether the improvement continues:

Crude oil production and prices: These remain important to export earnings.
Non-oil exports: Growth in fertiliser, agricultural and mineral exports could diversify FX earnings.
Remittance inflows: Sustained formal inflows would strengthen the external balance.
Import demand: A rapid increase in imports could narrow the goods surplus.
Services outflows: Continued growth could offset improvements elsewhere.
Investment income outflows: Rising repatriation of profits, interest and dividends can reduce the current-account surplus.
Foreign-exchange reserves: Continued reserve accumulation would provide an additional external buffer.
Naira stability: A stronger external position can support FX liquidity, but exchange rates remain determined by broader market conditions.

The bigger picture

Nigeria’s $7.54 billion current-account surplus in Q2 2026 represents a significant improvement from the $4.49 billion recorded in Q1 and the $5.17 billion recorded a year earlier.

The 67.9% quarterly increase shows that external earnings strengthened considerably during the period, particularly through the goods account and higher diaspora remittances.

But the figures also show why Nigeria’s external position cannot be assessed through exports alone.

Larger services and primary-income outflows absorbed part of the gains from stronger goods earnings.

The longer-term objective is therefore to build an external sector where export earnings and remittances consistently outweigh import, services and investment-income outflows.

If Nigeria can maintain strong export receipts while expanding non-oil exports and formal remittances, the current-account surplus could provide an important foundation for stronger FX liquidity, reserve accumulation and external stability.