Nigeria ‘s Trade surplus shrinks
Nigeria’s trade surplus fell sharply in July 2025, with the Central Bank of Nigeria (CBN) reporting a 35% decline, dropping from US$ 2.14 billion in June to US$ 1.39 billion.
While the country still exports more than it imports, the decline highlights some pressing trends in the economy.
Total exports for the month were US$ 4.93 billion, with oil and gas making up nearly 85% of the total.
Revenue from crude oil and refined petroleum products fell compared to June, though gas exports and non-oil commodities, including minerals, recorded modest growth.
Meanwhile, imports rose sharply to US$ 3.54 billion, driven by higher demand for petroleum products and non-oil goods.
Rising imports show that the country is spending more on foreign goods, which can put pressure on government reserves.
The increase in imports combined with weaker export growth led to the significant drop in the trade surplus.
A smaller trade surplus can reduce foreign currency inflows, putting pressure on the naira and potentially increasing costs for imported goods.
The data also highlights Nigeria’s continued reliance on oil exports and the need for stronger diversification.
For businesses and consumers, rising import costs may affect pricing, while policymakers are reminded of the importance of supporting non-oil exports and local industries.
Strengthening trade diversification remains key to building a more resilient and productive economy.
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