Fuel imports crash 87% as balance of payments surplus slips to $2.4bn

NIGERIA recorded a balance of payments (BOP) surplus of $2.38 billion in the first quarter (Q1) of 2026, according to data released by the Central Bank of Nigeria (CBN). The figure represents a decline from the $2.67 billion surplus posted in the fourth quarter (Q4) of 2025.

The balance of payments measures all economic transactions between a country and the rest of the world over a specified period. A surplus indicates that foreign exchange inflows from exports, investments and other international transactions exceeded outflows. On the other hand, a balance of payments (BoP) deficit occurs when a nation’s total outflows exceed total inflows.

Despite the decline in the overall BOP position, the country’s current account strengthened considerably. The current account surplus rose to $4.98 billion in Q1 2026, compared with $1.40 billion in the previous quarter and $3.41 billion in the corresponding period of 2025.

According to the apex bank, the stronger current account performance was largely driven by rising earnings from crude oil, natural gas and refined petroleum exports, alongside a sharp reduction in imports of refined petroleum products.

Crude oil export receipts increased by 19.8 percent to $8.11 billion from $6.77 billion in Q4 2025. Gas exports also expanded by 13 percent to $2.53 billion, while exports of refined petroleum products climbed 20.3 percent to $2.37 billion during the quarter.

READ ALSO: NNPC fights Dangote refinery suit, warns against fuel market monopoly

On the import side, spending on refined petroleum products dropped sharply by 87.5 percent to $310 million from $2.48 billion in the preceding quarter. The steep decline contributed significantly to an improvement in the country’s trade position.

As a result, the goods account surplus surged to $5.95 billion in Q1 2026, up from $1.77 billion recorded in the final quarter of 2025.

The report showed that total exports rose to $15.49 billion from $13.36 billion in the previous quarter, while non-oil exports recorded a modest increase of 4.62 percent to $2.49 billion.

Meanwhile, total imports fell to $9.54 billion from $11.59 billion, reflecting the impact of lower fuel import costs. However, crude oil imports moved in the opposite direction, jumping by 308.82 percent to $1.39 billion from $340 million. Non-oil imports declined by 10.49 percent to $7.85 billion.

The CBN also reported that net outflows in the services account widened to $3.71 billion from $3.32 billion in Q4 2025, largely due to higher spending on travel and business services abroad.

The deficit in the primary income account narrowed to $2.83 billion from $3.27 billion, supported by lower dividend and interest payments to foreign investors.

In contrast, the secondary income account balance, which captures diaspora remittances and personal transfers, declined to $5.57 billion from $6.21 billion in the preceding quarter.

READ ALSO: Rewane: Fuel price surge may push Nigeria’s inflation back to 19%

On the financial account, Nigeria remained in a net borrowing position, recording net borrowing of $2.51 billion in Q1 2026 compared with $1.96 billion in the previous quarter.

The development was driven mainly by stronger foreign portfolio investment inflows. Portfolio investment liabilities rose to $6.03 billion from $5.27 billion in Q4 2025, offsetting a slight decline in direct investment inflows.

The report further showed an increase in Nigeria’s external reserves, which climbed to $48.35 billion at the end of March 2026 from $45.75 billion at the end of December 2025.