Nigeria’s current‑account surplus rose to $5.28 billion in the second quarter of 2025, up from $2.85 billion in the first quarter, according to a Frequently Asked Questions release on the Central Bank of Nigeria (CBN) website. The larger surplus reflects stronger external‑sector resilience and higher foreign‑exchange inflows. Gross external reserves also jumped to $43.05 billion as of 11 September, providing 8.28 months of import cover. This rise in reserves boosts confidence among citizens, foreign and local investors, and other economic agents.
The CBN attributes the improvement to sustained exchange‑rate stability, tighter monetary policy and a moderation in petroleum‑product prices, all of which have created a more favourable balance‑of‑payments outlook. External reserves have risen by more than $692 million in the past 18 days and have been on an upward trend since 14 July 2025. The reserve crossed the $42 billion threshold on 25 September 2025, the highest level in over six years, a fact highlighted by President Bola Tinubu in his Independence Day address on 1 October.
To ease the liquidity burden on banks and encourage productive lending, the CBN’s Monetary Policy Committee (MPC) recently lowered the Cash Reserve Ratio (CRR) for commercial banks from 50 % to 45 %. It also introduced a 75 % CRR on non‑Treasury Single Account (TSA) public‑sector deposits to curb excess liquidity and mitigate inflationary pressure. The CBN reaffirmed its commitment to balancing inflation control with support for the real economy, especially micro, small and medium‑sized enterprises (MSMEs). Conventional monetary‑policy tools are being used to anchor inflation expectations while maintaining a stable, robust financial system, enabling institutions to channel surplus funds to deficit segments of the economy.
In line with the sustained decline in inflation over the past five months, the CBN cut the Monetary Policy Rate (MPR) by 50 basis points, from 27.5 % to 27 %. This reduction aims to support economic recovery without compromising macro‑economic stability. The bank also narrowed the Standing Facilities corridor, moving from a +500/‑100‑basis‑point range to a symmetric +250/‑250‑basis‑point band around the MPR, to improve liquidity management and reduce overnight‑rate volatility. These measures are intended to sustain disinflation while ensuring the banking sector has sufficient liquidity to expand credit and foster economic growth, underscoring the CBN’s commitment to a stable and robust financial system essential for Nigeria’s development.
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