Nigeria’s external accounts lost the benefit of a substantial inflow of foreign exchange in the first half of 2026, as unexplained transactions totalling $12.4 billion wiped out much of the combined gains from the country’s current account surplus and net financial inflows, the World Bank has said.
The unexplained outflows, recorded as net errors and omissions in the balance of payments, likely reflected, in part, oil export proceeds that were not repatriated into the country, according to the bank’s latest assessment of the Nigerian economy.
The development highlighted a persistent weakness in Nigeria’s foreign exchange market, where limited repatriation of export earnings and low Foreign Direct Investment (FDI) have left the country increasingly dependent on short-term portfolio investments to support foreign exchange supply and build external reserves.
However, the global lender did not say the $12.4 billion represented stolen funds or missing oil revenue. The figure only reflected a discrepancy between recorded external transactions and financial flows that could not be fully reconciled.
It therefore requires further clarification from the government. According to the World Bank, the gap likely reflected, in part, oil export proceeds that were not repatriated.
