Nigeria’s trade position tightened significantly in July, with the nation’s monthly trade surplus dropping 35 per cent to $1.39 billion from $2.14 billion recorded in June. The decline, according to the Central Bank of Nigeria’s July Monthly Economic Report, reflects a simultaneous rise in import spending and a marginal dip in export receipts.
The report shows that total exports fell by 0.8 per cent to $4.93 billion, largely due to lower earnings from crude oil and refined petroleum products. Meanwhile, total imports surged by 25.09 per cent to $3.54 billion, driven by increased purchases of both oil and non-oil items.
The CBN noted that the narrowing surplus mirrors “marginal decline in export performance and higher import bills,” underscoring shifting dynamics in global energy markets and domestic demand.
Crude oil, gas and refined petroleum products continued to dominate Nigeria’s export basket, accounting for 84.88 per cent of total export earnings. However, receipts from these products slipped to $4.18 billion from $4.29 billion in June. Crude oil export earnings dropped to $2.55 billion from $2.74 billion, while refined petroleum product receipts fell sharply to $0.53 billion from $0.95 billion.
Gas exports offered a bright spot, rising to $1.10 billion from $0.95 billion, supported by firmer international prices fuelled by colder-than-usual temperatures in Europe. Non-oil exports also improved, climbing to $0.75 billion from $0.68 billion, thanks to stronger receipts from mineral products.
On the import side, the report recorded broad-based increases. Non-oil imports rose 23.30 per cent to $2.64 billion from $2.14 billion, while the value of petroleum product imports increased to $0.90 billion from $0.69 billion.
The July figures indicate persistent pressures on Nigeria’s external sector, shaped by volatility in global crude prices, elevated inventories and strong domestic demand for imported goods. The CBN is expected to keep a close watch on these trends as policymakers assess the implications for foreign exchange stability and overall economic performance.