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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Power generation companies in Nigeria have dismissed allegations by the Nigeria Labour Congress that electricity firms were engaged in “institutionalised extortion,” describing the claims as misleading and damaging to efforts aimed at stabilising the country’s fragile power sector.

The reaction was contained in a statement issued on Wednesday by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji.

Ogaji faulted recent remarks by the President of the NLC, Joe Ajaero, saying they did not reflect the realities of the Nigerian Electricity Supply Industry.

Ogaji stated, “While we acknowledge the frustrations of Nigerians regarding unstable electricity supply, we must firmly reject the characterisation of the sector’s challenges as robbery and a grand deception. Such allegations are a misrepresentation of the facts and a disservice to ongoing efforts to stabilise the power sector.”

According to the association, power generation companies remain the most financially exposed segment of the electricity value chain because they generate electricity that is not fully paid for due to revenue shortfalls across the market.

She added, “GenCos face the greatest risk in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn. Rather than castigate operators, attention should be focused on addressing the liquidity crisis that threatens the sustainability of electricity supply.”

The association also rejected claims that proposed government financial support for the sector amounted to a political arrangement, insisting that intervention funds were necessary to prevent further deterioration.

“We strongly refute the insinuation that proposed government support for the sector is a clandestine plan to settle the boys. Such claims are baseless and undermine the critical liquidity interventions required to keep the lights on,” the statement added.

The GenCos said they were open to scrutiny and willing to subject their financial records to independent forensic examination if required.

“If the NLC or any other institution considers it necessary, our books are available for any form of investigation. What is important is to identify the real causes of the sector’s challenges and work collaboratively toward sustainable solutions,” Ogaji said.

The development follows recent comments by the NLC accusing electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.

The power generators urged organised labour to engage constructively with stakeholders, warning that inflammatory rhetoric could discourage investment and worsen electricity shortages.

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The President and Chairman of Dangote Industries Limited, Aliko Dangote, on Tuesday called on the Federal Government to urgently convene a national retreat to resolve Nigeria’s persistent electricity crisis, warning that widespread power outages could undermine the country’s industrialisation drive and economic growth.

Dangote made the appeal at the official national launch of the National Industrial Policy 2025 in Abuja, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future.”

The policy emerged against the backdrop of a weak manufacturing sector, which, due to poor electricity supply, high production costs, limited access to finance, infrastructure deficits, and heavy reliance on imports, has been constrained.

The event was attended by top government officials, captains of industry, and development partners, with President Bola Tinubu represented by Vice President Kashim Shettima.

In his goodwill message, Dangote stressed that without stable electricity, Nigeria would struggle to create jobs, drive industrial productivity, or achieve sustainable economic growth.

“One of the things that I want to advise Your Excellency, Mr Vice President, is to call a national forum where we will have a one- or two-day retreat and resolve the issues of power. Because without power, Mr Vice President, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth. So we must make sure that we tackle this issue,” he said.

His comments were greeted with applause from participants, including the Vice President. Dangote noted that while government policies to support industrialisation were commendable, the electricity challenge remained the single most critical constraint to manufacturing and job creation.

“We know what you call industrial policy; it is actually very, very important because the government cannot create jobs. They can only facilitate. And I think they have already given us whatever we need to create jobs. The policies that they have put in place are very good. Nigeria is a very big market. Not only that, this is a market where we are supposed to be serving other African nations,” he added.

However, he stressed that policy incentives alone were insufficient without strong infrastructure and protection of domestic industries.

“But one thing that we need is not only the policy. The policy is there. If you look at the incentives that we have for people to invest in Nigeria, actually, they are even more than what we need. The only thing that is remaining is the protection of industries.”

According to him, excessive importation remained a major threat to local manufacturing. “Even if you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” Dangote stated.

The billionaire industrialist lamented that many manufacturers now spend more on power generation than on production due to erratic electricity supply.

“So, people who are buying diesel, I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power. Some factories spend more money generating electricity than producing goods. You have to set up your own power plant and also a standby. That does not make sense. There is nowhere you can get prosperity that way,” he added.

Dangote’s remarks came amid a recent five-day power supply disruption linked to gas maintenance activities, which triggered widespread blackouts across several parts of the country and heightened concerns among manufacturers and businesses.

Seven power plants across Nigeria experienced gas supply constraints between February 12 and 15, 2026, as Seplat Energy shut down a major facility for scheduled maintenance, leading to nationwide generation shortfalls.

His comments reflected ongoing concerns in the organised private sector following the recent gas supply maintenance shutdown that affected power generation and led to load shedding across the country.

Stakeholders have repeatedly warned that frequent outages are forcing companies to rely on diesel and alternative energy sources, significantly raising production costs and contributing to inflation.

Dangote also highlighted the dominance of the private sector in Nigeria’s economy, urging stronger collaboration between government and businesses. “Nigeria is the only country in Africa where the private sector is bigger than the government. When you look at GDP, the private sector contributes almost 90 per cent, compared to the government’s 10 per cent,” he said. “We have what it takes to create massive consumption, massive industry, and disposable income.”

He added that entrepreneurs must also support national development by paying taxes and complying with regulations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business. Today, the government makes more money in our cement business than anybody. But that is okay, so far they allow us to expand and prosper.”

Dangote further said recent economic reforms had improved investor confidence and currency stability. “With the policies that this government has implemented, people are beginning to see the results. Manufacturers are happy. The stability of the currency is encouraging investors to come into Nigeria,” he said.

He projected that the naira could strengthen further if import dependence is reduced. “We should manufacture what we consume. That is the only way to create jobs. If we block unnecessary imports and support local production, the naira will get stronger,” he said.

He further urged the government to strengthen policies protecting domestic manufacturers from dumping and unfair competition. “If you allow imports, take into consideration our own constraints — high interest rates, infrastructure deficits, and electricity challenges. If dumping is allowed, nobody will survive,” he said.

Dangote added that the current policy direction was already attracting investors and boosting confidence in the Nigerian economy.

“The trajectory that we are on now is very high. Many people are trying to invest in Nigeria. The only thing that the government must emphasise is the protection of local industries. Once we do that, we will create jobs and reduce the burden on the government.”

He concluded by reiterating the need for urgent reforms in the power sector. “It takes a truly patriotic person to say, I love to produce diesel, but if I have my way, I would rather there is constant power, and I will not produce diesel again,” he said.

Nigeria has continued to grapple with electricity supply challenges, with power generation frequently disrupted by gas shortages, infrastructure vandalism, and maintenance shutdowns. The recent gas maintenance exercise led to a temporary drop in generation capacity and widespread outages, affecting households, manufacturers, and businesses.

Experts say a stable power supply remains critical to the success of the National Industrial Policy 2025, which seeks to boost local production, reduce imports, and position Nigeria as a manufacturing hub in Africa.