Oil import FX demand jumps 115% despite local production

Nigeria’s foreign exchange demand for oil-sector imports surged by 114.91 per cent in 2025, highlighting the country’s continued reliance on imported petroleum products and related inputs.

This was disclosed in the recently released Central Bank of Nigeria’s 2025 Annual Report and Statement of Accounts, which showed that foreign exchange utilised for oil sector imports rose to $4.86bn, compared with about $2.26bn recorded in 2024.

The report indicated that petroleum-related imports remained the second-largest consumer of foreign exchange among visible imports, accounting for 25.91 per cent of the total import-related FX utilisation during the year. This, however, is despite the local production and refining of crude to get petrol, diesel, aviation fuel, etc.

According to the apex bank, aggregate foreign exchange utilisation across the economy expanded significantly in 2025, driven largely by increased demand for invisible imports and higher import-related transactions.

The report stated, “Aggregate utilisation of foreign exchange by economic sectors rose, driven by higher invisible imports. Foreign exchange utilisation increased by 59.36 per cent to $42.83bn, from $26.88bn in 2024.”

The CBN explained that visible imports accounted for $18.76bn, representing 43.80 per cent of the total foreign exchange utilised during the year, compared with $15.62bn recorded in 2024.

It added that industrial imports remained the largest consumer of foreign exchange among visible imports, followed closely by the oil sector.

The report stated, “A disaggregation showed that $18.76bn (43.80 per cent) of the total foreign exchange was utilised for visible imports, relative to $15.62bn in 2024. Of the foreign exchange utilised in total visible imports, industrial sector imports were dominant at 42.11 per cent.

“This was followed by the oil sector (25.91 per cent), manufactured products (15.64 per cent), food products (10.51 per cent), transport sector (3.78 per cent), mineral sector (1.04 per cent), and agricultural sector (1.00 per cent).”

Providing further breakdown, the apex bank said petroleum imports recorded the sharpest increase among the major import categories.

According to the report, “A further analysis showed that the amount utilised for oil sector import rose by 114.91 per cent to $4.86bn. Utilisation for manufactured products rose by 61.70 per cent to $2.93bn, while the transport sector increased by 52.17 per cent to $0.71bn, and the agricultural sector by 20.71 per cent to $0.19 billion.”

The CBN, however, noted that foreign exchange utilisation declined in some key sectors despite the overall increase. It stated, “However, the amount utilised for the industrial sector decreased by 0.76 per cent to $7.90bn, while utilisation for food products and minerals decreased by 22.01 and 54.85 per cent, to $1.97bn and $0.19bn, respectively, relative to the levels in 2024.”

The report also revealed that foreign exchange utilisation for invisible transactions exceeded that of visible imports during the year, reflecting increased demand for financial services, travel and other offshore obligations.

According to the CBN, “Foreign exchange utilisation for invisible transactions at $24.07bn or 56.20 per cent of the total, increased by 113.83 per cent, compared with $11.26bn in 2024.”