Data from the International Monetary Fund (IMF) indicates Nigeria’s economy is growing and stabilizing, with increased investment and savings.
Increasing investment and national savings helped Nigeria’s current account balance reach $1.432 billion in 2024, according to the IMF’s World Economic Outlook Database report. Nigeria’s gross national savings and total investment grew to 26.32% and 25.75% of GDP in 2024, respectively. This trend is expected to continue, driving economic growth.
A country’s current account balance represents the combined total of its trade balance, net income, direct transfers, and asset income, providing a comprehensive picture of its international economic transactions. It reflects the balance between exports and imports, income earned and paid, and asset increases or decreases. A positive balance indicates a net lending position, while a negative balance indicates a net borrowing position.
The development comes as the country grapples with the aftermath of subsidies removal by President Bola Tinubu in May, 2023. Since then, prices of electricity, food, transportation, housing, and inflation have skyrocketed, leading to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) declaring a nationwide industrial strike on June 3. The unions are demanding a monthly living wage of N494,000, higher than the current N30,000 being paid by the government. Nevertheless, the government has shown interest in shifting grounds and settling for a higher wage than N60,000.
Nigeria’s inflation rate currently stands at 33.69 per cent, according to data from the National Bureau of Statistics (NBS).