Nigeria recorded a balance-of-payments surplus in the third quarter of 2025, marking a return to positive external positioning after a deficit in the previous quarter.
The improvement was supported by stronger export earnings, steady diaspora remittances, and renewed inflows of foreign capital, which together helped rebuild the country’s external buffers.
Data released by the Central Bank of Nigeria showed that Africa’s largest oil producer posted an overall balance-of-payments surplus of $4.6 billion in the three months to September. This outcome reversed the deficit recorded in the second quarter and was anchored by a sustained current-account surplus of $3.42 billion.
The current-account performance reflected gains across trade, secondary income, and financial flows, pointing to a broader recovery in Nigeria’s external-sector dynamics.
A major driver of the turnaround was a wider surplus in goods trade, which stood at $4.94 billion during the quarter. Crude oil exports rose to $8.45 billion, supported by improved production levels and firmer global oil prices.
Exports of refined petroleum products surged by 44 percent to $2.29 billion, signalling a notable shift in Nigeria’s downstream energy profile.
The increase in refined product exports underscored the expansion of domestic refining capacity, particularly the 650,000-barrel-per-day Dangote Refinery. This development reinforced Nigeria’s gradual transition from being a net importer to an exporter of refined fuels.
Total goods exports climbed to $15.24 billion in the quarter, while imports of refined petroleum products declined by 12.7 percent. This reduction eased pressure on foreign-exchange demand and contributed to an improvement in the overall trade balance.
Fuel imports have historically been among the largest drains on Nigeria’s external accounts, despite the country’s position as a major crude oil exporter.
Diaspora remittances continued to play a crucial role in supporting the external position. The secondary income account recorded a surplus of $5.5 billion during the quarter.
Included in this figure were remittance inflows of $5.24 billion from Nigerians living abroad. These flows have become increasingly significant as policymakers intensify efforts to diversify foreign-exchange sources away from oil revenues.
The financial account also contributed positively to the overall balance-of-payments outcome, with Nigeria recording a net lending position of $320 million in the quarter.
Foreign direct investment inflows rose to $720 million, while portfolio investment increased to $2.51 billion. The rise in portfolio flows reflected stronger participation by non-resident investors in Nigeria’s domestic debt and equity markets.
Nigeria has been experiencing renewed investor confidence, supported by ongoing foreign-exchange reforms, the adoption of a more flexible exchange-rate regime, and tighter monetary policy aimed at restoring credibility and attracting scarce hard currency.
As a result of these developments, Nigeria’s external reserves rose to $42.77 billion at the end of September, up from $37.81 billion at the end of June. The increase strengthened the Central Bank of Nigeria’s capacity to support the naira and meet the country’s external obligations.
The central bank said the third-quarter balance-of-payments performance highlights improving external-sector fundamentals, firmer investor confidence, and the cumulative impact of reforms in the foreign-exchange market, monetary policy, and the domestic energy sector.
