The Central Bank of Nigeria (CBN) has announced a significant turnaround in the nation's external financial position for the third quarter of 2025. According to data released by the apex bank, Nigeria recorded an overall Balance of Payments (BOP) surplus of $4.60 billion. This marks a sharp reversal from the deficit recorded in the previous quarter, signaling strengthening economic fundamentals.
Drivers of the Surplus: Trade and Remittances Lead the Way
The impressive surplus was underpinned by a current account surplus of $3.42 billion. A key contributor was the robust performance of the goods account, which remained in surplus at $4.94 billion. The CBN highlighted a notable rise in export earnings, with crude oil exports climbing to $8.45 billion.
Perhaps more significantly, exports of refined petroleum products surged by 44 per cent to $2.29 billion. This growth points to tangible progress in domestic refining capacity, suggesting Nigeria's gradual shift from being a net importer to a potential net exporter of refined products. Concurrently, imports of these products fell by 12.7 per cent, further improving the trade balance.
Another major pillar of support was the resilient inflow of remittances from Nigerians living abroad. The secondary income account recorded a substantial surplus of $5.50 billion, of which $5.24 billion came from diaspora remittances.
Strengthened Financial Flows and Reserves
Developments in the financial account also bolstered the overall positive outcome, with Nigeria posting a net lending position of $0.32 billion. Investor confidence appeared to be on the mend, as evidenced by rising foreign direct investment (FDI) inflows, which reached $0.72 billion.
Portfolio investment inflows remained strong at $2.51 billion, reflecting continued non-resident participation in the domestic financial market. This combined inflow of capital contributed directly to a major boost in the country's external buffers.
The CBN reported that Nigeria's external reserves increased to $42.77 billion by the end of September 2025, up from $37.81 billion at the end of June. This accretion provides the monetary authority with greater firepower to defend the naira and manage external obligations.
Implications and Forward Look
The CBN stated that the Q3 2025 BOP outcome underscores a strengthening of external sector fundamentals and firmer investor confidence. The bank also attributed the positive shift to the continued impact of recent reforms in several critical areas.
These reforms span the foreign exchange market, monetary policy implementation, and the domestic energy sector. The data suggests that policy measures aimed at stabilizing the economy and encouraging production are beginning to yield measurable results in the nation's external accounts.
This surplus provides a much-needed cushion for the Nigerian economy, enhancing its ability to withstand global financial shocks and fostering a more stable environment for growth and investment.
