Nigeria’s current account balance rose to a 9-year high of $7.7 billion in the first half of 2022, five times higher than the $1.13 billion recorded in the second half of last year.
It is also significantly higher when compared to the negative balance of $2.98 billion recorded in the corresponding period of 2021.
This is according to data tracked by Nairalytics from the Central Bank of Nigeria.
Nigeria’s current account also known as the balance of payment, is a statement that records all the monetary transactions made between residents of a country and the rest of the world during any given period.
A balance of payment (BOP) statement of a country indicates whether the country has a surplus or a deficit of funds, i.e. when a country’s export is more than its import, its BOP is said to be in surplus. On the other hand, the BOP deficit indicates that its imports are more than its exports.
Nigeria’s Current Account Balance Rises To 9-Year High Of $7.7 Billion In H1 2022
Nigeria endured a current account deficit between H2 2018 and the first half of 2021, largely due to a decline in export earnings, an increase in imports, and a drop in diaspora remittances. However, since the second half of 2021, the balance has maintained a surplus and hit a 9-year high in the period under review.
A positive current account balance is a major positive for Nigeria’s foreign currency crisis and could mark a turning point in the drive to stabilize the exchange rate.