Introduction

Nigeria's foreign exchange demand climbed to $50.93 billion in 2025, marking the highest annual utilisation since 2019 and a 91% jump from the previous year. The surge, driven by import activity and invisible transactions, reflects broader shifts in the country's foreign currency landscape.

What Happened

According to the Central Bank of Nigeria's 2025 Statistical Bulletin, total FX utilisation reached $50.93 billion across the full year, up sharply from $26.65 billion in 2024. Quarterly data showed Q1 2025 at $12.71 billion, rising to $13.13 billion in Q2, moderating to $12.01 billion in Q3, and recovering to $13.08 billion in Q4. Import-related transactions totalled $19.94 billion, while invisible transactions accounted for $30.99 billion of the year's total. Key sectors driving import demand included industrial products at $8.60 billion, manufactured goods at $2.69 billion, and food items at $2.36 billion. Invisible transactions were led by financial services at $20.30 billion, with business services rising to $5.45 billion from just $702 million in 2024.

Why This Matters

The sharp rise in FX utilisation signals increased economic activity and import dependency, even as Nigeria's external reserves strengthened to $54.08 billion by early September 2026. Higher invisible transaction volumes, particularly in financial services, point to growing demand for foreign currency beyond traditional trade. The increase in import-driven demand across industrial and manufactured goods sectors may influence trade balances and naira pressure, while the significant jump in business services indicates expanding non-oil economic engagement. Monitoring these trends is crucial for policymakers, investors, and businesses navigating Nigeria's foreign exchange environment.

Key Takeaways

  • Nigeria's total FX utilisation hit $50.93 billion in 2025, the strongest level since 2019.
  • The annual figure represents a 91% increase from $26.65 billion in 2024.
  • Import-related transactions rose to $19.94 billion, up from $15.54 billion the prior year.
  • Invisible transactions surged to $30.99 billion, driven largely by financial services at $20.30 billion.
  • Industrial sector imports led the import category at $8.60 billion, followed by manufactured products and food items.
  • External reserves crossed $54 billion in September 2026, reaching $54.08 billion.
  • Net FX inflow for the year stood at $60.81 billion, supported by $109.86 billion in total FX inflows.

Conclusion

Nigeria's foreign exchange demand reached a six-year peak in 2025, fuelled by a combination of import growth and a dramatic rise in invisible transactions. As the economy continues to adapt, the data underscores the importance of tracking sector-specific FX flows and the broader implications for trade, reserves, and currency stability. Stakeholders should watch quarterly updates and CBN policy responses as the year progresses.