Nigeria’s Balance of Payments Declined by 38% to $4.23bn
Nigeria’s balance of payment position remained in surplus at USD4.23 billion in 2025; however, this represents a 38.07% year-on-year decline from USD6.83 billion recorded in 2024.
According to a Central Bank report, a major driver of this decline was the 14.4 per cent drop in crude oil exports, which fell to $31.54 billion from $36.85 billion in 2024. This shortfall in oil revenue occurred despite a 21.4 per cent surge in gas exports, rising to $10.51 billion.
Furthermore, the Goods Account, a subset of the current account, recorded a higher surplus of $14.51 billion. This was boosted by the Dangote Refinery, which contributed $6.13 billion in refined petroleum exports and helped slash fuel imports by 28.9 per cent, from $14.06 billion to $10.00 billion.
The Financial Account underwent a dramatic shift, moving from a net lending position of $9.65 billion in 2024 to a net borrowing position of $1.69 billion in 2025.
This reversal was largely driven by a 48.3 per cent decline in Foreign Portfolio Investment (FPI) inflows, which fell to $8.04 billion from $15.55 billion.
On the other hand, Foreign Direct Investment (FDI) inflows increased by 149.1 per cent, rising to $4.01 billion from $1.61 billion in 2024, indicating that long-term investors showed renewed confidence in the Nigerian economy, particularly in equity and reinvested earnings.
The pressure on the BOP was further compounded by rising out-payments in the services and primary income accounts. The deficit in the services account grew to $14.58 billion, driven by increased spending on transport, travel, and insurance.
Nigeria’s external reserves recorded a healthy leap of 13.8 per cent, ending the year at $45.75 billion. This growth in reserves provides a critical buffer for the economy as it navigates the structural shifts in its trade and investment balances.
Net out-payments in the primary income account surged by 60.9 per cent to $9.09 billion. The CBN attributed this to a spike in dividends and interest payments to non-resident investors, particularly those with portfolio and direct investments in the country.
Meanwhile, Nigeria’s current account surplus fell year-on-year by 26 per cent to $14.04 billion in 2025 from $19.03 billion in 2024. The decline was due to a decrease in crude oil exports, crude oil imports by Dangote Refinery, an increase in Non-oil imports, and an increase in net outpayments for services.
The BoP report stated: “Provisional, BOP, statistics for 2025 show a current account surplus of $14.04 billion, which was lower than the $19.03 billion in the previous year but significantly higher than the $6.42 billion recorded in 2023.
“Major contributors to the decline in Current Account are the decrease in crude oil exports from $36.85 billion to $31.54 billion (14.41 per cent), crude oil imports of $3.74 billion by Dangote Refinery, increase in Non-oil imports from $25.74 billion to $29.24 billion (13.6 percent) and increase in net out-payment for services from $13.36 billion to $14.58 billion (9.13 per cent). Oil Prices Could Average $120 if Hormuz Closed for 6 Months -Fitch
