Nigeria’s current account surplus rose to $5.28 billion in the second quarter of 2025, up from $2.85 billion in the first quarter, according to new data released by the Central Bank of Nigeria (CBN).
The apex bank disclosed this in a Frequently Asked Questions (FAQ) update on its official website on Tuesday, noting that the increase reflects stronger external sector resilience and improved foreign exchange inflows.
Alongside the surplus, Nigeria’s external reserves climbed to $43.05 billion as of September 11, 2025, 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 bank attributed the improvement to a combination of exchange rate stability, tighter monetary policy, and lower petroleum product prices, which contributed to a more favorable balance of payments outlook.
Between July 14 and September 11, reserves grew by more than $692 million.
The last time reserves approached the current level was September 2019, when they stood at $41.99 billion. By September 25, 2025, reserves had surpassed $42 billion for the first time in over six years.
President Bola Tinubu also highlighted the achievement in his Independence Day broadcast on October 1.
The CBN further explained recent changes to monetary policy. The Cash Reserve Ratio (CRR) for commercial banks was reduced from 50% to 45% to ease liquidity constraints and promote lending.
“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 non-Treasury Single Account (TSA) public sector deposits, the MPC imposed a 75% CRR on such accounts.
“This measure ensures that these deposits do not contribute to inflationary pressure, which could undermine the current momentum of disinflation,” the bank noted.
It assured depositors that they will continue to have full access to their funds.
The apex bank also reaffirmed its commitment to balancing inflation control with real sector growth, particularly for small businesses.
“We are using conventional monetary policy tools to anchor inflation expectations while ensuring a stable and robust financial system,” it said.
Policy Rate and Corridor Changes
At its last MPC meeting, the CBN cut the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%.
“The MPC lowered the MPR by 50 basis points to 27% in response to the sustained decline in inflation over the past five months and in anticipation of further decline in inflation for the remainder of 2025,” the bank said.
“Also, the reduction in the policy rate by the MPC would help to support economic recovery efforts of the government without undermining macroeconomic stability.”
In addition, the CBN revised the Standing Facilities corridor from an asymmetric +500/-100 basis points to a symmetric +250/-250 basis points around the MPR.
“Standing facilities refer to monetary policy instruments that help the CBN to provide or mop overnight liquidity in the banking system,” the bank explained.
By shifting to a symmetric corridor, the CBN hopes to enhance liquidity management, reduce overnight interest rate volatility, and strengthen interbank market efficiency.
“Overall, this would encourage more active interbank trading and enhance monetary policy transmission,” the statement concluded.
