Nigeria’s FX utilisation hits $50.93bn in 2025 as dollar demand surges

Nigeria’s foreign exchange (FX) utilisation climbed to $50.93 billion in 2025, its highest annual level since 2019, as demand for foreign currency by businesses, importers and other economic agents surged by more than 90 per cent.

The figure, contained in the Central Bank of Nigeria’s (CBN) 2025 Statistical Bulletin, represents a 91.1 per cent increase from the $26.65 billion utilised in 2024.

The sharp rise was driven largely by increased demand for invisible transactions, which include financial and business services, alongside higher import-related FX requirements.

CBN data showed that FX utilisation stood at $12.71 billion in the first quarter of 2025, rose to $13.13 billion in the second quarter, moderated to $12.01 billion in Q3 and increased again to $13.08 billion in Q4.

Invisible transactions accounted for the largest share of the annual figure at $30.99 billion, compared with $11.11 billion in 2024. Import-related transactions rose to $19.94 billion from $15.54 billion.

Financial services alone consumed $20.30 billion in FX in 2025, nearly double the $10.76 billion recorded a year earlier. Business services also jumped to approximately $5.45 billion from $702 million.

On the import side, the industrial sector accounted for $8.60 billion, up from $6.96 billion in 2024, while manufactured products and food products utilised $2.69 billion and $2.36 billion respectively.

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Oil-sector FX utilisation more than doubled to $4.73 billion from $2.26 billion, while transport and agriculture rose to $677.51 million and $208.87 million respectively.

Economists say the sharp increase in FX utilisation reflects both stronger economic activity and the continued structural dependence of Nigerian businesses on foreign currency.

The surge in invisible transactions is particularly significant because it suggests that pressure on the naira is no longer being generated primarily by physical imports. Payments for financial, professional and other business-related services are increasingly contributing to dollar demand.

However, the increase in FX availability may also indicate improved capacity of the financial system to meet previously unmet demand following reforms in the foreign exchange market.

Nigeria recorded $109.86 billion in aggregate FX inflows in 2025, up 13.81 per cent from $96.53 billion in 2024. FX outflows also increased by 27.83 per cent to $49.05 billion, producing a net inflow of $60.81 billion.

The key concern for policymakers, analysts say, is whether rising FX utilisation can be matched by sustainable foreign-exchange earnings.

With oil remaining a major source of dollar revenue, economists have continued to stress the importance of boosting non-oil exports, domestic production and foreign investment to reduce structural pressure on the naira.

The latest figures come as Nigeria’s external reserves reached $54.08 billion as of September 3, 2026, crossing the $54 billion mark for the first time since December 2008.

The development provides a stronger external buffer, but analysts caution that reserve accumulation alone will not eliminate FX pressures unless Nigeria can sustainably increase dollar earnings while reducing its dependence on imported goods and services.