Nigeria current account surplus rises to $5.28 billion

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 the Central Bank of Nigeria (CBN). The apex bank cited stronger external‑sector resilience and improved foreign‑exchange inflows as the main drivers of this increase.

Gross external reserves also climbed, reaching $43.05 billion as of 11 September, which provides 8.28 months of import cover. The rise in reserves has boosted confidence among citizens, foreign and local investors, and other economic agents. The CBN attributed the improvement to sustained exchange‑rate stability, tighter monetary policy, and a moderation in petroleum‑product prices, all of which have contributed to a more favourable balance‑of‑payments outlook. Since 14 July 2025, external reserves have risen by more than $692 million in 18 days and have been on an upward trend, surpassing the $42 billion mark on 25 September 2025—the highest level in over six years. President Bola Tinubu highlighted this increase in his Independence Day address on 1 October.

The CBN also explained recent changes to the Cash Reserve Ratio (CRR) for commercial banks, lowering it from 50 % to 45 % to ease the liquidity burden on banks and create more room for productive lending and intermediation. To curb excess liquidity from public‑sector accounts outside the Treasury Single Account (TSA), the Monetary Policy Committee (MPC) introduced a 75 % CRR on non‑TSA public‑sector deposits. The bank emphasized its commitment to balancing inflation control with support for the real economy, particularly micro, small and medium enterprises (MSMEs).

In line with the sustained decline in inflation over the past five months, the CBN reduced the Monetary Policy Rate (MPR) by 50 basis points, from 27.5 % to 27 %. It also narrowed the Standing Facilities corridor, moving from an asymmetric +500/‑100‑basis‑point range to a symmetric +250/‑250‑basis‑point range around the MPR, to improve liquidity management and reduce volatility in overnight interest rates. The CBN believes these measures will sustain disinflation while ensuring the banking sector has adequate liquidity to support credit expansion and economic growth.

Overall, the rise in Nigeria’s current‑account surplus and external reserves represents a positive development for the economy, and the CBN’s monetary‑policy actions aim to maintain stability and support economic recovery.