Data from the Central Bank of Nigeria (CBN) indicates that Nigeria’s Current Account remained in surplus in 2025 but shrank by 26.2 per cent to $14.04 billion, down from $19.03 billion in 2024. The account, which tracks the net of the country’s trade in goods and services, was impacted by multiple structural factors.
Crude oil exports fell 14.4 per cent to $31.54 billion, despite a 21.4 per cent surge in gas exports to $10.51 billion. The Goods Account, however, recorded a higher surplus of $14.51 billion, bolstered by refined petroleum exports from the Dangote Refinery, which contributed $6.13 billion and helped cut fuel imports by 28.9 per cent, from $14.06 billion to $10.00 billion.
The Financial Account also shifted dramatically, moving from a net lending position of $9.65 billion in 2024 to a net borrowing position of $1.69 billion in 2025. Foreign Portfolio Investment (FPI) inflows plunged 48.3 per cent to $8.04 billion, while Foreign Direct Investment (FDI) surged 149.1 per cent to $4.01 billion, signaling renewed confidence from long-term investors.
Pressure on the balance of payments was further compounded by rising net outflows in services and primary income. The services account deficit grew to $14.58 billion due to higher spending on transport, travel, and insurance, while primary income outflows surged 60.9 per cent to $9.09 billion, reflecting higher dividend and interest payments to foreign investors.
Despite these challenges, Nigeria’s external reserves rose 13.8 per cent to $45.75 billion, providing a buffer against external shocks. The report noted that key drivers of the current account contraction included crude oil export declines, Dangote Refinery’s crude imports, a 13.6 per cent increase in non-oil imports, and a 9.1 per cent rise in net out-payments for services.
The data underscores structural shifts in Nigeria’s trade and investment flows, highlighting the country’s reliance on refined oil exports and the growing importance of FDI for sustaining external balances.
