Wednesday,
October 1, 2025 - Nigeria’s
current account surplus surged to $5.28 billion in the second quarter of 2025,
up from $2.85 billion in Q1, reflecting stronger external sector resilience and
improved foreign exchange inflows.
The Central Bank of Nigeria (CBN) disclosed this on Tuesday
in a Frequently Asked Questions on its official website, noting that gross
external reserves also rose to $43.05 billion as of September 11, providing
8.28 months of import cover.
“The growth in external reserves serves as a
source of confidence to citizens, foreign and local investors, and other
economic agents,” the CBN stated.
The apex bank attributed the improvement to sustained
exchange rate stability, tighter monetary policy, and a moderation in petroleum
product prices, all of which have contributed to a more favorable balance of
payments outlook.
According to a Nairametrics latest report, Nigeria’s
external reserves have surpassed the $42 billion mark as of Thursday, September
25, 2025, the highest in over six years.
According to the latest data from the CBN, the country’s
external reserve has increased by over $692 million in 18 days. It also shows
that the reserve has been on an upward swing since the 14th of July 2025.
The closest the external reserve has gotten to the present
figure was on September 27, 2019, when it hit $41.992 billion.
The CBN’s FAQ also explained why the Monetary Policy
Committee (MPC) recently reduced the Cash Reserve Ratio (CRR) for commercial
banks from 50% to 45%.
“The reduction seeks to ease the liquidity
burden on commercial banks, thereby providing more room for productive lending
and intermediation,” the CBN explained.
To counter excess liquidity from public sector accounts
outside the Treasury Single Account (TSA), the MPC also introduced a 75% CRR on
non-TSA public sector deposits.
“This measure ensures that these deposits do
not contribute to inflationary pressure, which could undermine the current
momentum of disinflation,” the bank noted. Despite the adjustment, the CBN
assured that account holders will retain full access to their funds, with
commercial banks equipped to meet all legitimate obligations.
The CBN emphasized its commitment to balancing inflation
control with support for the real economy, particularly MSMEs.
“We are using conventional monetary
policy tools to anchor inflation expectations while ensuring a stable and
robust financial system,” the bank said. By maintaining market stability,
financial institutions are better positioned to allocate surplus funds to
deficit segments of the economy.
The bank reiterated its role as a lender of last resort, providing short-term liquidity support to commercial banks through its Standing Lending Facility. This ensures that banks can meet customer obligations while maintaining systemic stability.
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