Oil import FX demand jumps 115% despite local production

Nigeria's demand for foreign exchange to import oil sector products has dramatically increased, surging by 114.91% in 2025 to reach $4.86 billion. This significant rise, detailed in the Central Bank of Nigeria's (CBN) 2025 Annual Report, underscores the nation's persistent dependence on imported petroleum products and related inputs, even with domestic crude oil refining capabilities.

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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.

Petroleum-related imports constituted the second-largest category of visible imports, accounting for 25.91% of the total foreign exchange utilized for imports during the year. The overall foreign exchange utilization across the Nigerian economy expanded substantially in 2025, growing by 59.36% to $42.83 billion from $26.88 billion in 2024. This expansion was largely driven by increased demand for invisible imports and higher import-related transactions.

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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.

Visible imports accounted for $18.76 billion, or 43.80% of the total foreign exchange utilized. Industrial sector imports remained the dominant consumer of foreign exchange among visible imports, followed by the oil sector. While the oil sector saw the sharpest increase in import-related FX demand, other sectors like manufactured products and the transport sector also experienced significant rises. Conversely, the industrial sector, food products, and minerals saw a decrease in foreign exchange utilization for imports.

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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).