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

•Reverses $0.27bn deficit in Q2’25

•Financial account turns positive at $0.32bn

•Goods trade supports economy with $4.94bn surplus

By Babajide Komolafe

Nigeria’s financial transactions with the rest of the world improved markedly in the third quarter of 2025 (Q3’25), as the country recorded a Balance of Payments (BOP) surplus of $4.60 billion, reversing the deficit of $0.27 billion posted in the preceding quarter, Q2’25.

This development  means Nigeria received more foreign money than it spent during the quarter.

The Central Bank of Nigeria, CBN, disclosed this in its Balance of Payments Highlights for Q3’25 released yesterday. According to the apex bank, the improvement was driven mainly by a rise in external reserves and better management of financial flows, even though earnings from regular trade and income weakened.

Financial account leads recovery

The strongest boost came from the financial account, which tracks investments, loans and savings between Nigeria and other countries.

In Q2’25, Nigeria was a net borrower, taking in about $6.9 billion more than it invested or saved abroad. By Q3’25, this changed, with the country recording net lending of $0.32 billion. This indicates that Nigeria saved more foreign assets than it borrowed during the period.

A key factor was the increase in external reserves, which rose from $37.81 billion at the end of June to $42.77 billion by the end of September, effectively strengthening the country’s foreign savings buffer.

Foreign investment flows were mixed. Short-term investments, known as foreign portfolio investments, dropped sharply to $2.51 billion from $5.28 billion in Q2’25, reflecting weaker investor appetite. However, long-term foreign direct investment improved significantly, rising to $0.72 billion from $0.09 billion, suggesting growing confidence by investors with a longer-term outlook.

Goods trade remains supportive.

Trade in goods continued to support Nigeria’s external position. The goods account recorded a surplus of $4.94 billion in Q3’25, 6.14 per cent lower than the $5.28 billion recorded in the previous quarter but stronger than the level a year earlier.

Exports rose to $15.24 billion, driven mainly by crude oil and refined petroleum products. Crude oil export earnings increased to $8.45 billion, while refined fuel exports jumped to $2.29 billion. At the same time, imports of refined fuel fell by 12.7 per cent to $1.65 billion, reflecting improved local refining.

However, higher imports of machinery, raw materials and consumer goods limited the growth in the trade surplus.

Current account weakens

Despite the strong overall BOP surplus, Nigeria’s current account weakened, with the surplus falling by 41.14 per cent to $3.42 billion from $5.81 billion in Q2’25. This was mainly due to higher payments to foreign investors and increased spending on services such as transport, travel and insurance.

Diaspora remittances remained strong at $5.24 billion, helping to cushion the impact on the economy.

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