Trade Surplus Expands to $3.46 Billion as Oil Imports Decline

Nigeria recorded a stronger trade surplus in April 2026 as lower import spending, particularly on petroleum products, outweighed modest growth in exports.

According to the Central Bank of Nigeria (CBN), the country’s merchandise trade surplus rose to $3.46 billion in April from $2.62 billion in March, representing a 32.06 percent month-on-month increase.

The improvement was driven largely by a sharp reduction in import expenditure with Nigeria’s total import bill declining 18.7 percent to $3.13 billion during the month.

The decline reflected lower purchases of both petroleum and non-petroleum products, suggesting easing pressure on the country’s foreign exchange demand.

Oil imports recorded one of the steepest declines during the period, falling to $570 million from $1.05 billion in March. The CBN linked the drop to expanding domestic refining capacity, which has gradually reduced Nigeria’s dependence on imported petroleum products.

Non-oil imports also moderated, falling to $2.56 billion as businesses reduced purchases of agricultural commodities, industrial inputs and raw materials.

While imports weakened, export earnings continued to edge higher.

Total exports increased 1.85 percent to $6.59 billion, supported by stronger non-oil export performance despite softer earnings from some petroleum products.

Crude oil remained Nigeria’s dominant export, accounting for more than 85 percent of total export receipts. Revenue from crude shipments improved during the month as higher international oil prices lifted export earnings.

However, receipts from gas exports and refined petroleum products declined, partly offsetting gains from crude oil sales.

The non-oil sector continued to provide additional support for external earnings.

Export receipts from agricultural and manufactured products strengthened during the month with commodities such as cashew nuts and fertiliser contributing to higher non-oil export income.

India retained its position as Nigeria’s largest destination for non-oil exports, followed by Vietnam, the United States, China and Germany, indicating continued diversification of export markets.

The stronger trade balance comes as Nigeria continues implementing reforms aimed at improving external sector stability, expanding domestic refining and promoting non-oil exports.

A lower import bill reduces pressure on foreign exchange reserves while strengthening the country’s current account position, particularly when supported by stable export earnings.

The latest figures also suggest that increased refining activity within Nigeria is beginning to influence trade flows by reducing the need for imported petroleum products, one of the country’s largest import categories for decades.

Economists say sustaining the improvement will depend on continued growth in non-oil exports, higher crude production, stable international oil prices and further expansion of domestic manufacturing capacity.