CBN Reports Strong BOP Surplus, Rising Reserves In Q3 2025
By Salmanu Isah Darazo
The Central Bank of Nigeria (CBN) has reported a robust overall Balance of Payments (BOP) surplus of US$4.60 billion in the third quarter (Q3) of 2025, underscoring improved external sector resilience and strengthening foreign exchange buffers despite persisting global and domestic economic headwinds.
According to the CBN’s Q3 2025 Balance of Payments Highlights, the performance was driven by sustained export earnings, strong diaspora remittance inflows, improved financial account outcomes, and a significant accretion to external reserves.
*Current Account Records Surplus Despite Moderation*
Nigeria’s current account balance remained in surplus at US$3.42 billion in Q3 2025. However, this represented a 41.14 per cent decline compared to the US$5.81 billion recorded in Q2 2025, reflecting rising import demand and elevated service-related outflows.
The CBN noted that the moderation does not signal weakness but rather mirrors increased domestic economic activity and higher demand for foreign services, logistics, and technical support, which typically accompany periods of recovery and reform.
*Exports Strengthen on Oil and Refined Products*
Goods exports rose to US$15.24 billion, up from US$14.90 billion in the preceding quarter. This improvement was largely driven by:
• A 10.31 per cent increase in crude oil exports, supported by improved production levels and relatively stable global oil prices.
• A 44.03 per cent surge in refined petroleum exports, reflecting the growing contribution of domestic refining capacity and reduced reliance on imported refined products.
The CBN described the performance as a structural improvement in Nigeria’s trade profile, indicating early gains from policies aimed at enhancing value addition and reducing imported fuel dependency.
*Imports Rise Moderately, Fuel Imports Decline*
While overall imports increased moderately in Q3 2025, petroleum product imports declined by 12.7 per cent, easing pressure on foreign exchange demand.
The apex bank attributed this development to improved domestic supply conditions and sustained policy efforts to promote local refining and energy self-sufficiency.
*Remittances Continue to Anchor External Stability*
The secondary income account recorded a surplus of US$5.50 billion, reaffirming the critical role of diaspora remittances in supporting Nigeria’s external position.
According to the CBN, remittance inflows remained resilient due to ongoing reforms in the foreign exchange market, improved transparency, and the growing use of formal remittance channels.
*Financial Account Turns Positive*
In a notable development, the financial account posted a net lending position of US$0.32 billion, reversing the net borrowing position recorded in the previous quarter.
This improvement was supported by:
• Renewed portfolio investment inflows, particularly into fixed-income securities.
• Modest gains in foreign direct investment, reflecting cautious but improving investor sentiment.
The CBN stated that the outcome signals growing confidence in Nigeria’s macroeconomic reforms, exchange rate management, and monetary policy direction.
*External Reserves Rise Sharply*
Nigeria’s gross external reserves increased to US$42.77 billion as at the end of September 2025, up from US$37.81 billion at the end of Q2.
The CBN emphasized that the reserve build-up enhances the country’s capacity to:
• Meet external obligations,
• Support exchange rate stability, and
• Cushion the economy against global financial and commodity market shocks.
*Overall BOP Surplus Reflects Policy Gains*
The combined performance of the current, capital, and financial accounts resulted in an overall BOP surplus of US$4.60 billion, reinforcing Nigeria’s improving external sector outlook.
In addition, the Net Errors and Omissions (NEO) position narrowed further, indicating enhanced data quality and better capture of cross-border transactions.
*Policy Implications and Outlook*
The Q3 2025 BOP outcome highlights the effectiveness of the CBN’s policy measures, particularly in foreign exchange market reforms, export promotion, and reserve management.
However, the apex bank acknowledged key challenges ahead, including:
• Rising service-related outflows,
• Continued exposure to oil price volatility, and
• The need to deepen non-oil export diversification.
Going forward, the CBN reaffirmed its commitment to policies that strengthen external buffers, attract sustainable capital inflows, and support long-term macroeconomic stability.
*Conclusion*
Nigeria’s Q3 2025 Balance of Payments performance reflects a resilient and stabilising external sector, anchored by strong exports, remittances, improving investor confidence, and a solid reserve position.
As global uncertainties persist, the CBN’s data suggests that sustained reforms and prudent macroeconomic management will remain central to safeguarding Nigeria’s external balance and economic recovery.
Salmanu Isah
Darazo is an analyst and publisher, he can be reached via Salmanudrz@gmail.com
