Nigeria recorded a major improvement in its foreign exchange earnings in 2025, with total inflows rising to $109.86 billion, according to the Central Bank of Nigeria (CBN). The increase was largely driven by stronger earnings from non-oil exports and higher capital inflows, showing that the country is gradually relying less on crude oil as its main source of foreign exchange.
The CBN’s 2025 Annual Report revealed that total foreign exchange inflows increased by 13.81 per cent, up from $96.53 billion in 2024. This steady growth reflects improved investor confidence and stronger contributions from private sector activities, even though inflows received directly by the central bank declined slightly during the year.
One of the biggest highlights of the report was the performance of autonomous foreign exchange sources. These include non-oil exports, private investments, and capital importation. Together, they accounted for more than 64 per cent of Nigeria’s total foreign exchange earnings in 2025.
Autonomous inflows rose significantly to $70.54 billion, compared with $56.38 billion recorded a year earlier. According to the CBN, the increase was supported by higher earnings from non-oil exports and increased over-the-counter foreign exchange purchases, particularly from capital imported into the country.
The development suggests that sectors outside the oil industry are beginning to play a more important role in generating foreign exchange for Nigeria. It also reflects growing confidence among investors who continue to bring funds into the country’s economy.
While autonomous inflows strengthened, foreign exchange received through the CBN dropped slightly to $39.32 billion. The decline was mainly linked to lower receipts from government borrowing and foreign exchange swap transactions.
The report also showed that total foreign exchange outflows rose sharply to $49.05 billion, reflecting increased demand for foreign currency across the economy. Outflows from autonomous sources grew rapidly, while those handled by the CBN increased only slightly.
Despite the higher outflows, Nigeria still maintained a healthy net foreign exchange position. Net inflows reached $60.81 billion, an improvement from $58.16 billion recorded in 2024. Autonomous sources alone generated a net inflow of $54.28 billion, demonstrating their growing importance in supporting the country’s external finances.
Demand for foreign exchange also increased during the year as businesses imported more goods and services. Total foreign exchange utilisation climbed by 59.36 per cent to $42.83 billion.
Visible imports accounted for $18.76 billion, with the industrial sector receiving the largest allocation. The oil industry, manufacturing companies, food importers, transport businesses, mining firms and agricultural operators also accounted for significant portions of foreign exchange usage.
The report noted that spending on oil sector imports more than doubled during the year, while foreign exchange allocated to manufactured products also increased considerably.
Invisible transactions, which include financial services, education, travel and other non-physical payments, also recorded strong growth. These transactions accounted for $24.07 billion, representing more than half of the country’s total foreign exchange utilisation. Financial services remained the largest contributor within this category.
Another positive development was the continued growth of Nigeria’s external reserves. The country’s reserves increased by 13.85 per cent to $45.75 billion at the end of 2025. The CBN attributed the improvement to higher crude oil-related taxes, stronger foreign exchange purchases and increased third-party receipts.
The stronger reserve position gives Nigeria a healthier financial buffer against external economic shocks. According to the report, the reserves were enough to cover 8.77 months of imports for goods and services, far above the international benchmark of three months.
The CBN also noted that other international reserve indicators remained above global standards, suggesting that Nigeria’s external liquidity has improved significantly.
Overall, the report indicates that Nigeria’s foreign exchange market became more resilient in 2025. With stronger non-oil earnings, improved capital inflows and rising external reserves, the country is making gradual progress toward building a more diversified and stable economy. Continued support for exports, investment and economic reforms will be essential to sustaining this momentum in the years ahead.
