Nigeria recorded a balance of payments surplus in the third quarter of 2025, marking a turnaround from the deficit posted in the previous quarter, as stronger export earnings, steady diaspora remittances and renewed foreign capital inflows improved the country’s external position.
According to data released by the Central Bank of Nigeria, the overall balance of payments surplus stood at $4.6 billion in the three months to September. The rebound was underpinned by a current account surplus of $3.42 billion, alongside a wider goods trade surplus of $4.94 billion, reflecting improved export performance and easing pressure on imports.
Crude oil exports remained the largest contributor to external earnings, rising to $8.45 billion during the quarter. More notably, exports of refined petroleum products increased by 44 percent to $2.29 billion, signalling the growing impact of domestic refining capacity. The expansion of local refining, including output from the Dangote Refinery, has begun to reshape Nigeria’s trade dynamics by reducing dependence on imported fuel. As a result, imports of refined petroleum products declined by 12.7 percent, helping to conserve foreign exchange.
Beyond trade, financial inflows also supported the external balance. Workers’ remittances rose to $5.24 billion, underlining the continued importance of the Nigerian diaspora as a stable source of foreign exchange. Foreign direct investment increased to $720 million, while portfolio inflows climbed to $2.51 billion, reflecting improved investor sentiment following recent foreign exchange and monetary policy reforms.
The combined effect of these developments was reflected in a rise in Nigeria’s external reserves, which increased to $42.77 billion by the end of September. Higher reserves have strengthened the Central Bank’s capacity to support the naira and manage volatility in the foreign exchange market.
Overall, the return to a balance of payments surplus suggests a gradual improvement in Nigeria’s external fundamentals. Sustaining this momentum, however, will depend on maintaining export growth, consolidating gains from domestic refining and preserving investor confidence amid global economic uncertainty.
