Nigeria records $4.6bn Balance of Payment surplus in Q3’25

Nigeria’s financial dealings with the rest of the world improved significantly in the third quarter of 2025, as the country recorded a Balance of Payments surplus of $4.60 billion, reversing the deficit posted in the previous quarter. This turnaround indicates that Nigeria received more foreign inflows than it spent during the period. According to the Central Bank of Nigeria, the improvement was largely driven by better performance in the financial account and a substantial rise in external reserves, even though earnings from trade-related income and services weakened.

The financial account played the biggest role in the recovery. Nigeria moved from being a net borrower in Q2’25 to a net lender in Q3’25, reflecting improved management of foreign assets and liabilities. External reserves increased markedly from $37.81 billion in June to $42.77 billion by September, strengthening the country’s buffer against external shocks. While short-term foreign portfolio investment declined sharply, indicating reduced appetite from speculative investors, long-term foreign direct investment rose significantly, suggesting increased confidence among investors with a longer-term outlook.

Trade in goods continued to support Nigeria’s external position. The goods account recorded a healthy surplus, supported by higher export earnings from crude oil and refined petroleum products. Exports rose overall, while imports of refined fuel fell due to improved local refining capacity. However, increased imports of machinery, raw materials and consumer goods limited the growth of the trade surplus.

Despite the strong overall Balance of Payments position, the current account surplus weakened during the quarter. This decline was mainly due to higher payments to foreign investors and increased spending on services such as transport and travel. Nevertheless, strong diaspora remittances helped cushion the impact, providing steady foreign exchange inflows to the economy.

       Vanguard, 30 Dec 2025