Reported by Simon Daniel Yusuph l Journalist at Weng Global
Nigeria’s external earnings rose significantly to $20.08 billion in the second quarter of 2026, supported by stronger crude oil, natural gas, refined petroleum products and non-oil exports, according to provisional balance of payments data from the Central Bank of Nigeria (CBN).
The increase in export earnings contributed to a sharp expansion in Nigeria’s current account surplus, which climbed to $7.54 billion in Q2 2026, up from $4.49 billion in the first quarter and $5.17 billion in the corresponding period of 2025.
The latest figures point to stronger external-sector performance during the quarter, although the improvement remained closely linked to merchandise exports and continued inflows from Nigerians living abroad.
Export earnings strengthen Nigeria’s external position
Nigeria’s total exports increased from $15.56 billion in Q1 2026 to $20.08 billion in Q2, representing a substantial quarterly increase.
Crude oil remained a major source of export earnings, with receipts rising by 15.78 per cent to $9.39 billion during the quarter.
Natural gas exports recorded an even stronger increase, climbing by 40.15 per cent to $3.63 billion.
Exports of refined petroleum products also expanded considerably, rising by 66.24 per cent to $3.94 billion, while non-oil exports increased by 25.30 per cent to $3.12 billion.
The figures indicate that while crude oil continues to dominate Nigeria’s foreign-exchange earnings, growth in refined petroleum and non-oil exports also contributed to the stronger merchandise position.
Goods account surplus more than doubles
The stronger export performance pushed Nigeria’s goods account surplus to $10.12 billion in Q2 2026, compared with $5.96 billion in the preceding quarter and $4.85 billion in Q2 2025.
The improvement was also supported by a significant reduction in crude oil imports.
Crude oil imports fell from $1.39 billion in Q1 to $580 million in Q2, reducing the amount of foreign exchange spent on crude purchases from abroad.
The development comes as Nigeria continues to expand domestic refining capacity, with the increase in refined petroleum exports occurring alongside lower crude oil import expenditure.
The country’s broader merchandise trade data also showed a stronger external position during the quarter. The National Bureau of Statistics reported that Nigeria recorded a N12.60 trillion merchandise trade surplus in Q2 2026, with exports valued at N27.02 trillion and imports at N14.42 trillion.
Remittances provide additional support
Export earnings were not the only factor strengthening Nigeria’s current account.
Personal transfers from Nigerians abroad rose to $5.82 billion in Q2, up from $5.30 billion in the first quarter. The increase represented a 9.81 per cent quarterly rise.
These inflows form a major component of Nigeria’s secondary income account and helped offset higher outflows recorded in other parts of the current account.
The secondary income balance consequently strengthened to $6.30 billion during the quarter, compared with $5.47 billion in Q1.
The increase in remittances is significant because diaspora inflows provide foreign currency to households and businesses while adding to the country’s overall external receipts.
Services and investment payments remain a pressure point
Despite the improvement in exports and remittances, Nigeria continued to record sizeable outflows through its services and primary income accounts.
The services account recorded a net outflow of $4.67 billion in Q2, compared with $3.71 billion in Q1.
The increase reflected higher net payments associated with transport, travel, insurance, business services and government services, according to the CBN data reported on the provisional balance of payments figures.
The primary income deficit also widened to $4.20 billion, from $3.23 billion in the preceding quarter. The increase was associated largely with higher dividend and interest payments to non-resident investors.
These outflows demonstrate that a stronger trade balance does not automatically translate into equivalent improvements across every component of the current account.
Financial account records improvement
Nigeria’s financial account also improved during the second quarter.
The account recorded a net lending position of $1.74 billion, reversing a net borrowing position of $2.03 billion recorded in Q1 2026.
Portfolio investment liabilities generated approximately $7.09 billion in inflows, compared with $6.03 billion in the preceding quarter, while foreign direct investment inflows increased from $1.03 billion to $1.15 billion.
At the same time, Nigerian investment abroad continued to generate outflows, including $560 million in direct investment assets and $700 million in portfolio investment assets.
The figures suggest that Nigeria’s external position during the quarter was supported by both trade-related earnings and financial inflows.
External reserves also strengthen
The improvement in the balance of payments has coincided with a broader strengthening of Nigeria’s foreign-exchange buffers.
The CBN said Nigeria’s gross external reserves stood at $55.25 billion as of September 18, 2026, enough to finance about 11.3 months of imports of goods and services.
CBN Governor Olayemi Cardoso said the increase in reserves reflected the rebuilding of Nigeria’s external buffers and a reduction in foreign-exchange pressures.
The reserve position is important for the foreign-exchange market because stronger external buffers can provide the country with greater capacity to meet international payment obligations and manage periods of external pressure.
Oil remains central to Nigeria’s external earnings
Despite the stronger performance of non-oil and refined petroleum exports, Nigeria’s external earnings remain heavily influenced by the oil and gas sector.
Crude oil and natural gas together generated about $13.02 billion in export receipts during Q2, based on the reported CBN figures.
That dependence leaves Nigeria’s external position sensitive to movements in international energy prices, production volumes and disruptions affecting oil and gas infrastructure.
Recent trade data have also shown how changes in global crude prices can influence Nigeria’s export performance. Analysts cited by Punch have warned that the country’s merchandise trade surplus could narrow in the second half of 2026 if international crude prices moderate from recent levels.
This means the sustainability of Nigeria’s stronger external position will depend not only on current export earnings but also on production stability, domestic refining, non-oil export growth and continued foreign-currency inflows.
What the figures mean for Nigeria
The Q2 balance of payments figures provide evidence of an improved external position compared with both the previous quarter and the same period in 2025.
A $7.54 billion current account surplus means Nigeria recorded more net income from its international transactions than it paid out through the current account during the period.
The improvement can strengthen foreign-exchange liquidity and provide support for external reserves, although the data do not by themselves indicate that all underlying pressures in the economy have been resolved.
Nigeria still faces substantial payments for services, investment income and other international obligations. The continued concentration of export earnings in petroleum also leaves the external sector exposed to developments in global energy markets.
For households and businesses, the broader significance will depend on how stronger external earnings translate into foreign-exchange availability, exchange-rate stability, investment and economic activity.
Nigeria’s wider economic picture
The stronger external-sector performance comes against a backdrop of improving overall economic growth.
The National Bureau of Statistics reported that Nigeria’s economy grew by 4.43 per cent year-on-year in real terms in Q2 2026, compared with 3.89 per cent in the first quarter and 4.23 per cent in Q2 2025.
The combination of stronger economic growth, increased exports, higher remittance inflows and improved external reserves provides a broader picture of Nigeria’s economic performance during the period.
However, the sustainability of the improvement will depend on whether the country can maintain export growth while reducing vulnerabilities associated with dependence on crude oil revenues and external service payments.
What happens next
Nigeria’s external-sector performance will continue to be influenced by crude oil production, international energy prices, natural gas exports, domestic refining capacity, non-oil exports and diaspora remittances.
The CBN’s balance of payments figures also underscore the importance of maintaining foreign-exchange market reforms and strengthening external buffers.
For policymakers, the challenge will be to sustain the gains recorded in the second quarter while broadening the sources of foreign-exchange earnings and reducing the economy’s exposure to external shocks.
The Q2 figures therefore provide a stronger external position for Nigeria, but the durability of that improvement will depend on the performance of exports, investment flows, remittances and global commodity markets in subsequent quarters.
Weng Global – stories beyond borders
Sources
Central Bank of Nigeria
National Bureau of Statistics
Punch Newspapers
Premium Times
BusinessDay
