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.
External Reserves Witness Growth in 2025
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.
CBN Reduced CRR to Tighten Controls on Public Sector Deposits
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.
Balancing Inflation Control with Real Sector Credit
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.
