Dangote Refinery, Remittances Boost Balance Of Payment To $4.23bn Surplus

Nigeria’s external sector posted a $4.23 billion surplus in its overall balance of payments (BOP), on the back of the business activities of Dangote Refinery and improving remittances, with the current account surplus standing at $14.04 billion in 2025.

According to data released by the Central Bank of Nigeria (CBN) in the 2025 Annual Balance of Payment Highlights, while the current account surplus of $14.04 billion in 2025 was lower than the $19.03 billion recorded in 2024, it was significantly higher than the $6.42 billion recorded in 2023.

A key driver of performance was the goods account, which recorded a surplus of $14.51 billion, a 10.17 per cent year-on-year increase. This was achieved despite a 14.41 per cent decline in crude oil exports to $31.54 billion.

The CBN attributed the resilience in the trade balance to the growing role of the Dangote Refinery, which has begun to reshape Nigeria’s petroleum trade structure. The refinery contributed $5.85 billion in refined petroleum exports during the period under review.

The report further stated that the availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports, with imports dropping by 28.88 per cent to $10.00 billion from $14.06 billion in the previous year.

“Higher positive balance in the goods account driven by a significant increase in gas exports to other economies, export of refined petroleum products worth $5.85 billion by Dangote Refinery. Availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.” The report stated.

However, the gains recorded in the goods account were moderated by increased pressures in other segments of the current account. The services account deficit widened to $14.58 billion, driven by higher payments for transportation, travel and insurance services.

Similarly, the primary income account recorded a sharp increase in net outflows, rising by 60.9 per cent to $9.09 billion. The apex bank explained that this was due to “an increase in out-payments (dividend & interest) accrued to non-residents’ investments in 2025, mostly to direct and portfolio investors.”

Meanwhile, remittance inflows continued to support the economy, with diaspora remittances totalling $21.76 billion. This helped sustain the secondary income account at $23.20 billion, despite a marginal decline.

On the financial account, the report showed a reversal to a net borrowing position of $1.69 billion in 2025, from net lending recorded in the previous year.

This was largely driven by a significant increase in direct investment liabilities, which surged by 149.1 per cent to $4.01 billion.

In contrast, portfolio investment inflows declined sharply by 48.3 per cent to $8.04 billion, suggesting cautious sentiment among foreign investors.