More Nigerians gained access to foreign exchange, boosting their spending on business travels by 366 per cent to $672.27m in the first nine months of 2025, up from $144.19m recorded in the corresponding period of 2024.
The figures, contained in the Balance of Payments section of the December 2025 Central Bank of Nigeria’s Quarterly Statistics, showed that spending stood at $231.7m in the first quarter of 2025, rose slightly to $234.56m in the second quarter, and moderated to $205.97m in the third quarter, bringing the nine-month total to $672.27m.
In contrast, business travel expenditure was $77.33m in Q1 2024, fell to $46.62m in Q2, and further decreased to $20.24m in Q3, culminating in $144.19m for the same period.
Business travel refers to expenditures made by Nigerian residents when they travel abroad for business purposes, such as attending meetings, conferences, training sessions, or other work-related activities.
Payments linked to these trips, including for accommodation, local transport, and meals, are captured as outflows of funds in the BoP. Since money leaves Nigeria to pay for these services abroad, they show up as debits (negative entries) in the current account under services. Tickets and airfares are not included.
Data from the CBN indicate that travellers had more access to FX for business trips in the period under review. In turn, this reflected stronger international business engagement.
In separate interviews with The PUNCH, economic analysts and experts familiar with the matter explained that the development signalled renewed business confidence and improved foreign exchange stability.
The Director of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, said the jump in travel spending reflected improved confidence in international trade and stronger economic stability.
He explained: “An increase in business travel costs is a reflection of an improvement in confidence in international trade because there is a relationship between the frequency of travel and the volume of international business, whether it is services or merchandise, there’s always a relationship. If there is no trade, there will not be travel. If there are no international transactions that require physical movement, there will not be any travel.”
Yusuf added that the trend underscored Nigeria’s growing connectivity with the global economy, stating, “This is a reflection of the wider stability and confidence that we are seeing in the economy. And this has enabled more Nigerians to travel, to meet their business partners, and vice versa. I think this figure with respect to business travel, this is what it indicates.”
CPPE’s director observed that the country’s improved foreign exchange liquidity and exchange rate stability strengthened international trade flows in 2025 compared to previous years.
He asserted that given that the dollar is stable, there’s more liquidity in the foreign exchange markets. “So that has also given a big boost to international trade and investments,” Yusuf remarked.
A former Chairman of the Chartered Institute of Bankers of Nigeria, Prof Segun Ajibola, explained how this relationship plays into the recent figures.
Corroborating CPPE’s Yusuf, the economist noted that the increase could reflect both expanded business activities and higher travel costs.
He said, “The 366 per cent jump in expenditure could be a positive and negative development at the same time. Firstly, business travel is a cost item. It is an expense for each business organisation which could be driven by an increased level of activities, which pushes executives and others to travel purely for new business contracts, new business dealings, or by increased expansion of existing businesses, which may take them out of the country, or might involve them inviting business partners to the country at their own expense.”
The former CIBN leader added that if driven by business expansion, the rise would positively impact economic output. “It must reflect, if that is the case, it must reflect by way of enhanced business volumes, which means businesses incurring the cost. You also have higher business volumes, which will contribute to the country’s Gross Domestic Product,” he remarked.
Meanwhile, the Director-General of the Nigerian Employers’ Consultative Association, Adewale Oyerinde, said business travel spending impacts the country’s net cash outflows. He urged proportional or increased export earnings to balance the spending, which could deplete foreign reserves and widen current account deficits.
He explained, “The increased business travel prices impacting the BOP services account, which is a major part of the transaction that occurs and therefore affects the net cash outflows, could lead to depletion of foreign reserves and widening of current account deficits if not offset by a corresponding level of exports or remittances.”
Oyerinde observed that with respect to foreign exchange volatility risks, the naira remains devalued, and high prices for hotels add to the overall value to be transferred to US dollars.
He added, “Despite the Q3 2025, BOP surplus of $4.60bn, total services’ net cash outflows increased from $3.74bn last quarter, to now $4.07bn, while cash outflows associated with travel alone from Q3, now total $1.67bn, and therefore putting pressure on the external buffers with the foreign reserves now growing to $42.77bn.”
On how this improved access to FX for business travel impacts the broader economy, NECA’s DG stated that high costs lead to shrinking profit margins for companies in Nigeria.
He said, “Multinationals and exporters that depend on a global supply chain face extreme pressure due to rising hotel rates (+40 per cent in Lagos/Abuja) due to the scarcity of fuel and the unstable foreign exchange market.”
He stated that companies have two options, “either to eliminate physical travel through virtual alternatives or absorb the financial loss of high transportation inflation. Both options are likely to decrease a company’s investment capital.”
Oyerinde explained that large companies approaching significant expenditures with significant increases indicated a persistent strain on their investments.
“The continued rising cost of doing business may impact the expansion of the company or its ability to remain competitive in a high-growth Purchasing Managers Index (57.6 December 2025) but cost-compressed economy,” he concluded.
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