Nigeria’s Non-Oil Exports Surge 30.39% to US$2.66 billion in Q1 2025

Nigeria’s Non-Oil Exports Surge 30.39% to US$2.66 billion in Q1 2025

Nigeria’s non-oil exports surged 30.39% to US$2.66 billion in Q1 2025, signaling a push towards a more diversified economy away from oil. This is according to the Central Bank of Nigeria’s (CBN) latest Balance of Payments report. According to the report, this growth, coupled with a 5.83% increase in oil and gas exports to US$11.25 billion, significantly bolstered the nation’s trade performance.

The goods account, a key component of the current account, recorded a surplus of US$4.16 billion in Q1 2025, up 58.78% from US$2.62 billion in Q4 2024. This surge was driven by a 9.79% increase in total exports to US$13.91 billion, fueled by both non-oil and oil and gas sectors, alongside a 2.99% reduction in imports to US$9.75 billion.

Non-oil exports, encompassing agriculture, manufacturing, and solid minerals, grew from US$2.04 billion in Q4 2024 to US$2.66 billion, reflecting Nigeria’s strategic focus on economic diversification. The Central Bank attributes this to the naira’s depreciation, which enhanced the competitiveness of non-oil goods in global markets, making them more attractive to international buyers.

Oil and gas exports, which rose from US$10.63 billion to US$11.25 billion, were propelled by higher export volumes and favorable global oil prices. The report notes that crude oil exports slightly increased to US$8.59 billion, while gas exports saw a remarkable 26.67% jump to US$2.66 billion, underscoring Nigeria’s enduring strength in energy markets.

The naira’s depreciation played a pivotal role in boosting export earnings, particularly for non-oil products, which gained a competitive edge in price-sensitive markets. However, the Central Bank highlights that increased export quantities also contributed, reflecting improved production capacity in both oil and non-oil sectors.

Imports declined from US$10.05 billion in Q4 2024 to US$9.75 billion, driven by reduced demand for petroleum products and non-oil imports. Notably, petroleum products, still Nigeria’s top import at US$2.32 billion, saw a decrease from US$2.78 billion, hinting at potential shifts in domestic consumption due to refining capacity.

The combined export growth led to a current account surplus of US$3.73 billion in Q1 2025, slightly down 1.84% from US$3.80 billion in Q4 2024 but up 1.08% from US$3.69 billion in Q1 2024. This sustained surplus underscores Nigeria’s ability to navigate global economic headwinds, though challenges in other BOP components persist.

More Insights

The services account recorded a higher net outflow of US$3.69 billion, up 6.03% from Q4 2024, due to increased imports of travel and business services. Similarly, the primary income account’s debit balance rose 13.48% to US$2.02 billion, driven by higher interest payments to non-resident investors, signaling rising external debt costs.

Secondary income fell 17.86% to US$5.29 billion, largely due to reduced foreign aid and grants, potentially linked to a U.S. executive order, alongside a 2.96% drop in workers’ remittances to US$4.93 billion. These declines highlight vulnerabilities in Nigeria’s external financing, which could temper the gains from export growth.

The financial account balance dipped to US$7.58 billion from US$7.82 billion, reflecting significant divestment in portfolio investments, and lower direct investment inflows down 19% to $250 million in Q1 2025, compared to $310 million in the previous quarter. External debt servicing and loan repayments further strained the financial account, contributing to an overall BOP deficit of US$2.77 billion.

Nigeria’s external reserves also declined to US$37.82 billion by March 2025 from US$40.19 billion in December 2024, raising concerns about foreign exchange liquidity. This drop, coupled with the BOP deficit, underscores the need for policies to sustain export momentum and stabilize reserves.

Share this article

Receive the latest news

Subscribe To Our Newsletter

Get notified about new articles