Nigeria’s Foreign Trade via Letters of Credit Rises 4.4% to $269.83 Million in Early 2025
Nigeria’s foreign trade supported by Letters of Credit (LC) rose by 4.4% year-on-year to $269.83 million in the first four months of 2025 (4M’25), up from $258.46 million recorded during the same period in 2024 (4M’24), according to data from the Central Bank of Nigeria (CBN).
An LC is a financial guarantee issued by a bank assuring international sellers that payment will be made once shipment conditions are met — a critical tool in facilitating global trade.
📈 Growing Confidence in Nigeria’s Trade Ecosystem
This rise reflects growing international confidence in Nigeria’s external trade environment, bolstered by stabilizing foreign reserves and improved macroeconomic indicators in 2025.
Previously, many Nigerian importers faced restrictions and rejections from foreign partners who demanded upfront payments due to Nigeria’s FX challenges and low reserve levels. The current surge in LC usage signals a reversal of this trend.
📊 Monthly LC Trends (Jan–Apr 2025):
Despite the overall growth, month-on-month figures show significant fluctuations:
- January: $64.55 million
- February: $95.6 million (+48% MoM)
- March: $43.53 million (-54.4% MoM)
- April: $64.3 million (+47.7% MoM)
These swings highlight ongoing volatility in trade dynamics, even as confidence improves year-on-year.
