Nigeria recorded a strong rebound in its external sector in the third quarter of 2025, posting an overall Balance of Payments (BOP) surplus of $4.60 billion, according to data released by the Central Bank of Nigeria (CBN).
The result marks a significant turnaround from the deficit recorded in the preceding quarter. The apex bank attributed the improvement to stronger trade performance, sustained remittance inflows, increased financial flows, and continued accumulation of external reserves.
In a statement issued on Tuesday, the CBN said “the improvement was supported by a sustained current account surplus of $3.42 billion, supported by stronger trade performance, resilient remittance inflows, increased financial flows, and continued accretion to external reserves.”
The goods account recorded a surplus of $4.94 billion during the period, reflecting higher export earnings. Crude oil exports rose to $8.45 billion, while exports of refined petroleum products increased by 44 per cent to $2.29 billion. The Bank noted that this development points to “further progress in domestic refining capacity and Nigeria’s gradual transition from a net importer to a net exporter of refined petroleum products.”
Total goods exports stood at $15.24 billion, while imports of refined petroleum products declined by 12.7 per cent, strengthening the country’s trade balance.
Workers’ remittances also remained robust, with the secondary income account posting a surplus of $5.50 billion. Of this amount, $5.24 billion was attributed to inflows from Nigerians in the diaspora.
Developments in the financial account further supported the positive BOP outcome, as Nigeria recorded a net lending position of $0.32 billion. Foreign direct investment inflows increased to $0.72 billion, while portfolio investment inflows reached $2.51 billion. According to the CBN, these inflows “reflect improved investor sentiment and continued non-resident participation in domestic financial instruments.”
Nigeria’s external reserves rose significantly during the period, increasing to $42.77 billion at the end of September 2025, compared with $37.81 billion at the end of June. The Bank said this growth strengthened the country’s external buffers.
Overall, the CBN stated that the Q3 2025 BOP performance indicates firmer external sector conditions, rising investor confidence, and the positive impact of ongoing reforms in the foreign exchange market, monetary policy operations, and the domestic energy sector.
In a separate update, the apex bank reported that domestic economic activity gained further momentum in December 2025, with the Composite Purchasing Managers’ Index (PMI) remaining firmly above the 50-point expansion threshold.
According to the December 2025 PMI Survey, the Composite Index rose to 57.6 points, which the Bank described as “the strongest activity momentum recorded in about five years.”
Sectoral data showed sustained expansion across major employment-generating sectors, with agriculture recording 58.5 points, industry 57.0 points, and services 51.9 points, indicating broad-based growth in business output.
The survey revealed that 32 of the 36 subsectors monitored recorded expansion in production levels, new business orders, and employment. The CBN said the outcome reflects a steady recovery in domestic demand and rising productive activity, particularly within the non-oil economy.
The Bank attributed the improved PMI readings to the effects of ongoing macroeconomic stabilisation measures and efforts to support the operating environment and business confidence. It noted that these interventions continue to “bolster job creation, production efficiency, and overall optimism about economic prospects in the fourth quarter of 2025.”
According to the CBN, the December PMI reading reinforces expectations of a stable growth outlook as the country enters the new year.
