Nigerian Letters of Credit Surge 33% on Improved Forex Liquidity, Boosting Trade Activities

The surge in Letters of Credit (LC) by 33.3% year-on-year to N605.01 million in the first eight months of 2025, compared to N453.91 million in the same period in 2024, is attributed to improved forex liquidity and a stable Naira. This increase reflects renewed confidence among manufacturers and traders, driven by access to official forex windows.

The Central Bank of Nigeria's ongoing forex reforms and tighter monetary policies have enhanced transparency and stability in the Nigerian forex market, leading to a gradual return of confidence in importation and local manufacturing.