Nigeria’s external position improved markedly in the third quarter of 2025, with the country posting a Balance of Payments (BOP) surplus of $4.60 billion, reversing the deficit recorded in the previous quarter.

Data released by the Central Bank of Nigeria (CBN) showed that the rebound was driven by stronger trade performance, steady remittance inflows, higher financial flows and a build-up in external reserves.

The Bank said the current account remained firmly in surplus at $3.42 billion during the period.

According to the CBN, the goods account recorded a surplus of $4.94 billion, reflecting rising export earnings. Crude oil exports increased to $8.45 billion, while exports of refined petroleum products jumped by 44 per cent to $2.29 billion.

The apex bank noted that the trend underscores progress in domestic refining and Nigeria’s gradual shift from being a net importer to a net exporter of refined petroleum products.

Total merchandise exports stood at $15.24 billion, while imports of refined petroleum products fell by 12.7 per cent, strengthening the overall trade balance.

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Remittance inflows also remained robust. The secondary income account posted a surplus of $5.50 billion, with Nigerians in the diaspora accounting for $5.24 billion of that figure.

The financial account further supported the positive BOP outcome, as Nigeria recorded a net lending position of $0.32 billion. Foreign direct investment rose to $0.72 billion, while portfolio investment inflows reached $2.51 billion, reflecting improved investor confidence and sustained foreign participation in domestic financial markets.

Nigeria’s external reserves rose sharply to $42.77 billion at the end of September 2025, up from $37.81 billion at the end of June, strengthening the country’s external buffers.

The CBN said the third-quarter performance signals stronger external sector conditions, growing investor confidence and the continued impact of reforms in the foreign exchange market, monetary policy management and the domestic energy sector.

In a separate update, the apex bank reported that domestic economic activity gained further momentum in December 2025, with the Composite Purchasing Managers’ Index (PMI) rising to 57.6 points, well above the 50-point expansion threshold. The Bank described the reading as the strongest pace of activity in nearly five years.

Sectoral data showed sustained expansion across major employment-generating areas, with agriculture posting 58.5 points, industry 57.0 points and services 51.9 points, indicating broad-based growth.

The PMI survey revealed that 32 of the 36 subsectors tracked recorded expansion in output, new orders and employment, pointing to improving domestic demand and rising productive activity, particularly outside the oil sector.

The CBN attributed the stronger PMI readings to ongoing macroeconomic stabilisation efforts and policies aimed at improving the business environment, boosting confidence and supporting growth. It said these measures are helping to drive job creation, enhance productivity and reinforce optimism about economic prospects heading into the new year.