ECONOMY
Nigeria’s Foreign Trade via Letters of Credit Rises to $269.8m in Early 2025

Nigeria’s foreign trade transactions through Letters of Credit (LCs) rose by 4.4% year-on-year to $269.83 million in the first four months of 2025, up from $258.46 million recorded during the same period in 2024, according to new data from the Central Bank of Nigeria (CBN).
Letters of Credit are bank-issued guarantees of payment for imports once goods are shipped. They are a critical tool in international trade, especially for economies reliant on foreign inputs and raw materials.
The increase in LC usage suggests a renewed level of confidence in Nigeria’s external sector, largely attributed to steady improvements in the country’s foreign reserves. Until recently, Nigerian importers faced significant hurdles securing LCs due to weak reserve levels, often requiring full prepayments before foreign suppliers would initiate shipments—placing additional financial strain on businesses.
Monthly Trends Reflect Ongoing Volatility
Despite the year-on-year improvement, month-on-month (MoM) data for the first four months of 2025 reflect continued volatility:
- January: $64.55 million
- February: Jumped 48% to $95.6 million
- March: Dropped sharply by 54.4% to $43.53 million
- April: Rebounded by 47.7% to $64.3 million
These fluctuations highlight that while confidence is returning, stability in LC utilization remains fragile, potentially influenced by seasonal demand, shifting forex dynamics, or macroeconomic uncertainties.
A Sign of Economic Healing?
The growth in LC-backed trade may signal early signs of recovery in Nigeria’s broader economic framework, particularly amid government efforts to stabilize the naira, restore investor confidence, and boost the country’s foreign exchange buffer.
As foreign reserves continue to build and CBN-led reforms take shape, industry watchers will be closely monitoring whether the momentum in trade facilitation tools like LCs can be sustained and scaled to support broader trade and economic growth.
Discover more from Naijanewstoday
Subscribe to get the latest posts sent to your email.
-
POLITICS5 days ago
C-Sagas UK Chapter Meets Founder in London, Reaffirms Humanitarian Vision
-
TECH7 days ago
OpenAI CEO Sam Altman Warns ChatGPT Conversations Aren’t Legally Confidential
-
NEWS5 days ago
Ikwo Noyo Clan Releases Official Timetable for 2025 Nnesweoha Festival
-
ENTERTAINMENT4 days ago
VeryDarkMan Breaks Down in Tears as He Announces Death of Popular Fish Seller
-
NEWS5 days ago
Nigerian Youth Advocate Calls Out Facebook’s Monetisation Policies
-
CAMPUS REPORTS7 days ago
VC Inaugurates Two New Residential Flats Built by AE-FUNAI Parents’ Forum
-
CAMPUS REPORTS5 days ago
Experts Urge Responsible AI And Data Use at AE-FUNAI Law Conference
-
POLITICS4 days ago
2027 Elections: We’re the Only Viable Alternative to APC, PDP Slams ADC
-
CAMPUS REPORTS6 days ago
AE-FUNAI Hosts ACSPN, Highlights Role of Artificial Intelligence in Media and Security
-
SPORTS7 days ago
Asisat Oshoala Shuts Down Retirement Rumors After WAFCON Triumph
-
NEWS6 days ago
David Umahi’s Daughter Kimberly Graduates With First Class
-
SPORTS4 days ago
Morocco Challenges Referee Call After Super Falcons’ WAFCON Triumph