More Nigerians gained access to foreign exchange in 2025, significantly increasing their spending on business travel abroad by 366 per cent to $672.27m in the first nine months of the year, compared to $144.19m recorded during the same period in 2024.
Figures contained in the Balance of Payments section of the December 2025 Quarterly Statistics released by the Central Bank of Nigeria showed that business travel expenditure reached $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. This brought the total spending for the January–September period to $672.27m.
In contrast, business travel expenses in 2024 were significantly lower. Spending stood at $77.33m in the first quarter, declined to $46.62m in the second quarter, and dropped further to $20.24m in the third quarter, resulting in a cumulative $144.19m for the corresponding nine-month period.
Business travel expenditure captures payments made by Nigerian residents for overseas work-related trips, including attendance at meetings, conferences, training sessions, and other professional engagements. Costs such as accommodation, local transportation, and meals are recorded as outflows in the services component of the current account under the Balance of Payments framework. Since these payments are made to service providers abroad, they are classified as debits. Airfares and ticket purchases are excluded from this category.
The sharp rise in spending indicates improved access to foreign exchange during the review period, reflecting stronger liquidity conditions in the FX market and greater ease in meeting international payment obligations. Analysts say this development also points to renewed international business engagement by Nigerian firms and professionals.
Economic experts note that increased business travel often correlates with expanding trade volumes and cross-border investments. Greater physical engagement with foreign partners typically signals active negotiations, project execution, and market expansion efforts. As international trade activities intensify, so does the need for in-person meetings, contract signings, training programmes, and strategic planning sessions.
Some analysts view the surge as a reflection of improved macroeconomic stability compared to previous years. They argue that greater exchange rate stability and enhanced foreign exchange supply have restored a degree of confidence among businesses seeking to explore international opportunities. In this context, higher travel expenditure may signal growing connectivity between Nigeria and the global economy.
However, others caution that while the increase may reflect heightened business activity, it also represents a significant outflow of foreign currency. Business travel remains a cost item for companies, and rising expenditure can squeeze profit margins, particularly in a high-cost operating environment.
If the surge in travel spending is driven by business expansion and new commercial opportunities, it could translate into higher business volumes, increased output, and contributions to Gross Domestic Product. In such cases, the immediate outflow of foreign exchange may be offset by long-term gains through enhanced productivity, export growth, or foreign investment inflows.
On the other hand, sustained growth in travel-related outflows without a commensurate rise in export earnings or remittances could exert pressure on external reserves and widen the current account deficit. Even though Nigeria recorded a Balance of Payments surplus of $4.60bn in the third quarter of 2025, net cash outflows in the services account increased from $3.74bn in the previous quarter to $4.07bn. Travel-related outflows alone amounted to $1.67bn during the period.
Foreign reserves, which rose to $42.77bn, provide a buffer against external shocks. Nevertheless, persistent increases in service-related outflows could test the resilience of these buffers if not balanced by stronger inflows.
The broader business environment also plays a role. Companies operating in Nigeria face elevated operational costs, including rising hotel rates in major commercial hubs such as Lagos and Abuja, partly driven by energy costs and exchange rate volatility. For multinational firms and exporters integrated into global supply chains, the cost of physical travel can add to overall operational expenses.
Businesses therefore face strategic decisions: either reduce physical travel by leveraging virtual communication technologies or absorb higher travel costs as part of expansion strategies. Both approaches carry implications for investment capital allocation and long-term competitiveness.
While the 366 per cent jump in business travel expenditure underscores improved access to foreign exchange and renewed international engagement, its ultimate impact on the economy will depend on whether it translates into sustainable growth, stronger trade performance, and increased investment flows.
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