Nigeria external sector came under pressure in 2025 as the country Balance of Payments surplus dropped significantly reflecting deep structural challenges in trade and investment flows.
According to data released by the Central Bank of Nigeria the Balance of Payments surplus fell by 38.1 percent to 4.23 billion dollars from 6.83 billion dollars recorded in 2024.
The decline was largely driven by a sharp drop in crude oil earnings which remain a major source of foreign exce for Nigeria. Oil exports fell by 14.4 percent to 31.54 billion dollars despite strong performance in other areas.
Gas exports provided some relief rising by 21.4 percent to 10.51 billion dollars while refined petroleum exports also gained momentum. The Dangote Refinery emerged as a key contributor generating 6.13 billion dollars in exports and helping reduce fuel imports significantly.
Despite these gains the current account surplus declined by 26.2 percent to 14.04 billion dollars reflecting broader pressures in the economy.
The financial account also recorded a major shift moving from a net lending position to net borrowing. This was mainly due to a steep 48.3 percent drop in Foreign Portfolio Investment inflows which fell to 8.04 billion dollars.
However there was a positive development as Foreign Direct Investment increased by 149.1 percent to 4.01 billion dollars signaling renewed confidence from long term investors.
Rising outflows further weakened the external position with the services account deficit expanding due to higher spending on travel transport and insurance. Additionally payments to foreign investors surged significantly.
Amid these challenges Nigeria external reserves grew by 13.8 percent to 45.75 billion dollars providing a buffer for the economy.
Overall the data highlights the urgent need for economic diversification and reduced dependence on oil revenues.
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