Nigeria’s current account balance has seen a notable increase, reaching $1.432 billion in 2024. This represents a significant improvement from the $1.21 billion recorded in 2023, according to a report by the International Monetary Fund (IMF).
The IMF’s ‘World Economic Outlook Database’ highlights that this improvement is driven by Nigeria’s rising gross national savings and investment.
In 2024, the country’s gross national savings climbed to 26.32% of its Gross Domestic Product (GDP), up from 24.61% in 2023. Additionally, total investment rose to 25.75% of GDP in 2024, compared to 24.28% in the previous year.
A country’s current account balance provides a detailed assessment of its international economic activities, including the trade balance, net income, direct transfers, and asset income. A positive balance signifies a net lending status, while a negative balance indicates a net borrowing status.
The IMF data paints a positive picture of Nigeria’s economic trajectory, indicating robust growth and increasing stability. This trend of rising investment and savings is expected to bolster further economic development in the region.
However, the economic landscape in Nigeria remains complex. Following the removal of subsidies by President Bola Tinubu in May 2023, the country has seen significant increases in electricity tariffs, food prices, transportation costs, and house rents, contributing to an inflation rate of 33.69%, as reported by the National Bureau of Statistics (NBS).
In response to these economic challenges, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have called for a nationwide industrial strike. They are demanding a living wage of N494,000 per month, significantly higher than the current N30,000 being paid by the Federal Government.
The government has indicated a willingness to negotiate, showing interest in settling for a wage higher than the initially proposed N60,000.
