Omolabake Fasogbon
The continued reforms within the monetary sector have contributed to the expansion of the Steadiness of Funds (BOP) surplus and the continuing surge in diaspora remittances and inflows into exterior reserves. The $4.60 billion BOP surplus within the third quarter of 2025 marks a turnaround from the deficit place within the previous quarter.
The efficiency underscores strengthening exterior sector fundamentals, firmer investor confidence, and the continued impression of reforms within the overseas trade market, financial coverage implementation, and the home vitality sector. The financial and financial authorities have made vital progress in restoring macroeconomic stability, lowering inflation, enhancing knowledge analytics, ending financial financing of deficits, and narrowing the FX market hole to beneath two per cent.
The reforms instituted by the Central Financial institution of Nigeria (CBN) have helped in organically rebuilding FX reserves via stronger non-oil exports and higher market functioning.
The reforms have led to vital development in key sectors of the financial system, together with a surge in overseas capital inflows.
Already, Nigeria recorded an general Steadiness of Funds (BOP) surplus of $4.60 billion within the third quarter of 2025, marking a turnaround from the deficit place within the previous quarter, in keeping with knowledge launched by the apex financial institution.
The advance was supported by a sustained present account surplus of $3.42 billion, supported by stronger commerce efficiency, resilient remittance inflows, elevated monetary flows, and continued accretion to exterior reserves. The CBN reported that the products account remained in surplus at $4.94 billion, reflecting greater export earnings through the interval.
“Exports elevated to US$15.24 billion in Q3 2025, from US$14.90 billion in Q2 2025, on account of will increase in crude oil and refined petroleum merchandise exports. The nation is regularly switching from a internet importer of refined petroleum merchandise to a internet exporter. Import of petroleum merchandise decreased by 12.7 per cent to US$1.65 billion,” the CBN stated.
Additionally, internet out funds within the companies account elevated to US$4.07 billion in Q3 2025, from US$3.74 billion in Q2 2025.
“The rise in internet out- funds for companies was attributable to will increase in internet import of transport, journey, insurance coverage, pc & data, different enterprise, and Authorities companies not included elsewhere. The debit steadiness within the main earnings account elevated considerably to US$2.95 billion in Q3 2025, from US$1.25 billion in Q2 2025,” the report added.
“This was largely attributable to repatriation of reinvested earnings by home banks on their overseas investments overseas particularly on direct investments. The secondary earnings account steadiness decreased barely to US$5.50 billion in Q3 2025, from US$5.51 billion within the previous quarter. Private transfers (employees’ remittance) from Nigerians in diaspora barely decreased in Q3 2025 to US$5.24 billion, from US$5.30 billion in Q2 2025,” it famous.
Crude oil exports rose to $8.45 billion, whereas exports of refined petroleum merchandise elevated by 44 per cent to $2.29 billion, indicating additional progress in home refining capability and Nigeria’s gradual transition from a internet importer to a internet exporter of refined petroleum merchandise. Complete items exports stood at $15.24 billion, whereas imports of refined petroleum merchandise declined by 12.7 per cent, leading to an improved commerce steadiness.
Employees’ remittances additionally remained sturdy, with the secondary earnings account recording a surplus of $5.50 billion, together with $5.24 billion in remittance inflows from Nigerians within the diaspora. Developments within the monetary account additional supported the general BOP consequence, with Nigeria posting a internet lending place of $0.32 billion.
Overseas direct funding inflows rose to $0.72 billion, whereas portfolio funding inflows remained sturdy at $2.51 billion, reflecting improved investor sentiment and continued non-resident participation in home monetary devices. The nation’s exterior reserves elevated to $42.77 billion at end-September 2025, up from $37.81 billion at end-June, thereby strengthening Nigeria’s exterior buffers.
In response to the CBN, the Q3 2025 BOP consequence underscores strengthening exterior sector fundamentals, firmer investor confidence, and the continued impression of reforms within the overseas trade market, financial coverage implementation, and the home vitality sector.
CBN Governor, Olayemi Cardoso, had earlier reaffirmed that the banking system stays resilient, with continued vigilance on rising dangers.
On the sixtieth Annual Bankers’ Dinner, he outlined the Financial institution’s 2026 priorities, which embody strengthening the banking system, making certain value stability, modernising funds, deepening monetary inclusion, and supporting accountable fintech innovation.
He additionally famous development in digital funds, growth of contactless playing cards, improved agent-banking controls, and Nigeria’s exit from the FATF gray listing as main confidence boosters.
He concluded by restating the financial institution’s dedication to disciplined, clear, and forward-looking insurance policies to maintain Nigeria’s financial system secure and positioned for sustainable development.
How the financial reforms began
The CBN had launched into a sequence of daring reforms to draw extra overseas capital to the financial system, obtain value and trade charge stability.
In 2023, the brand new administration and the CBN-led by its Governor, Olayemi Cardoso liberalised the overseas trade market, stopped central financial institution financing of the fiscal deficit, and reformed gasoline subsidies. The federal government additionally strengthened income assortment and took strategic steps to scale back surging inflation charge.
Since these reforms have been carried out, worldwide reserves have elevated, and other people can now entry overseas trade within the official market. In addition to, Nigeria efficiently returned to worldwide capital markets final December and was lately upgraded by ranking companies. A brand new home, personal refinery is positioning Nigeria up the worth chain in a completely deregulated market.
CBN’s insurance policies, together with the foreign money reforms, led to funding inflows from overseas, and diminished interventions within the home foreign exchange market.
The unification of trade charges and the clearing of over $7 billion FX backlog raised the nation’s funding outlook, with multilateral organizations, just like the World Financial institution describing it as daring intervention to enhance the financial system’s sustainability in the long term.
Additionally, Nigeria’s sovereign threat unfold has fallen to the bottom stage since January 2020, erasing the premium gathered through the pandemic and subsequent pressure on its financial system. All these are deliberate efforts to woo traders and maintain capital inflows to the financial system.
In its efforts to tame inflation, the CBN lately hosted the Financial Coverage Discussion board 2025, that includes fiscal authorities, legislative, personal sector, growth companions, subject-matter consultants, and students with the theme: “Managing the Disinflation Course of.” The discussion board is a serious push to enhance financial coverage communication, foster dialogue, and collaborate on essential points shaping financial coverage.
In the course of the occasion, Cardoso defined that the apex financial institution’s focus is to maintain value stability, the deliberate transition to an inflation-targeting framework, and methods to revive buying energy and ease financial hardship. He stated the apex financial institution is continuous its disciplined strategy to financial coverage, geared toward curbing inflation and stabilising the financial system. Cardoso reiterated that the objective of the CBN is to make sure that financial coverage stays forward-looking, adaptive, and resilient.
In addressing our financial challenges, collaboration is essential: “Managing disinflation amidst persistent shocks requires not solely sturdy insurance policies but additionally coordination between fiscal and financial authorities to anchor expectations and keep investor confidence. Our focus should stay on value stability, the deliberate transition to an inflation-targeting framework, and methods to revive buying energy and ease financial hardship,” Cardoso stated.
The CBN additionally targeted on strengthening the banking sector, introducing new minimal capital necessities for banks (efficient March 2026) to make sure resilience and place Nigeria’s banking business for a $1 trillion financial system. These reforms and developments replicate the Financial institution’s dedication to creating an enabling setting for inclusive financial growth.
Nonetheless, attaining macroeconomic stability requires sustained vigilance and a proactive financial coverage stance. “As we shift from unorthodox to orthodox financial coverage, the CBN stays dedicated to restoring confidence, strengthening coverage credibility, and staying targeted on its core mandate of value stability,” Cardoso acknowledged.
Persevering with, he stated financial coverage easing turned crucial following a evaluate of macroeconomic developments.
In response to him, the choice by the MPC to ease the coverage stance was made in mild of enhancing inflation developments. “The committee’s choice to decrease the financial coverage charge was predicated on the sustained disinflation recorded previously 5 months, projections of declining inflation for the remainder of 2025, and the necessity to assist financial restoration efforts,” Cardoso stated.
A number of FX sources activated
The CBN beneath Cardoso is cultivating a number of FX sources to extend greenback inflows, increase greenback entry to producers and retail finish customers.
From strikes to enhance diaspora remittances via new product growth, the granting licenses to new Worldwide Cash Switch Operators (IMTOs), implementing a keen buyer-willing vendor FX mannequin, and enabling well timed entry to naira liquidity for IMTOs, the apex financial institution has simplified dollar-inflow channels for authorised sellers and different gamers within the worth chain.
The transfer has led to substantial accretion to the gross FX reserves and supported the steadiness of the naira. Provided that FX inflows to the financial system are strategic in attaining financial and financial coverage stability, the CBN beneath Cardoso places in loads of efforts in attracting extra inflows into the financial system.
Diaspora remittances to Nigeria, estimated at $23 billion yearly stay a dependable supply of foreign exchange to the home financial system. There are additionally different sources and insurance policies which can be being explored by the apex financial institution to maintain greenback inflows coming.
The CBN’s initiatives have supported continued development in these inflows, aligning with the establishment’s goal of doubling formal remittance receipts inside a 12 months.
The remittances within the financial system is predicted to extend based mostly on CBN’s ongoing efforts to bolster public confidence within the overseas trade market, strengthen a strong and inclusive banking system, and promote value stability, which is crucial for sustained financial development.
Director of Buying and selling at Verto, Charlie Chicken, stated greenback liquidity dynamic is now extra balanced, with overseas traders and airways in a position to repatriate funds.
Talking throughout Cordros Asset Administration seminar titled: “The Naira Playbook”, he stated Nigeria is now darling of overseas traders due to improved greenback liquidity within the financial system attributable to optimistic CBN’s reforms.
Attaining Financial Turnaround
In response to Cardoso, over the previous 12 months, Nigeria’s financial system has transitioned from disaster administration to laying the groundwork for a sustainable restoration.
“After practically a decade during which actual GDP development averaged about 2%, reforms have restored momentum and confidence in our broad macroeconomic setting. Our financial system grew by 4.23 per cent within the second quarter of 2025, the strongest tempo in 4 years, pushed by enhancements in telecommunications, monetary companies, and oil manufacturing,” he stated.
“Extra importantly by way of long-term stability, inflation, whereas nonetheless excessive, has moderated persistently. From a peak of 34.6 per cent in November 2024, it has greater than halved to 16.05 per cent in October 2025. This marks seven consecutive months of disinflation. Meals inflation, the most important single element of the basket, fell to 13.12 per cent in October, down from 16.87 per cent in September and 21.87 per cent in August,” he stated.
This vital, regular decline in inflation is restoring actual buying energy for households and companies. It additionally demonstrates disciplined execution and Nigeria’s return to orthodox financial coverage.
“We proceed with willpower to deliver inflation down additional. The present double-digit charge can’t be acceptable. Worth stability is the muse of sustainable development. Our transition to an inflation‑concentrating on framework is gaining traction. We’ve improved knowledge analytics, strengthened communication, and ended financial financing of fiscal deficits. These actions have strengthened financial coverage transmission and anchored expectations”.
