The Central Bank of Nigeria (CBN) has announced that the nation’s current account surplus climbed to $5.28 billion in the second quarter of 2025.
This information was detailed in a ‘Frequently Asked Questions’ document released on its official website. The regulator indicated that this substantial rise is evidence of a more robust external sector and better foreign exchange inflows.
Furthermore, the gross external reserves reached $43.05 billion as of September 11, which is sufficient to cover 8.28 months of imports.
The CBN affirmed that this growth in reserves “serves as a source of confidence to citizens, foreign and local investors, and other economic agents.”
The central bank attributed the improved financial position to stable exchange rates, strict monetary policy, and lower costs for petroleum products, all of which support a more positive balance of payments forecast.
According to the latest data, Nigeria’s external reserve has increased by over $692 million in 18 days and has been consistently rising since July 14, 2025.
The reserve’s figure now surpasses the $42 billion level as of Thursday, September 25, 2025, marking the highest point in more than six years.
This increase was also acknowledged by President Bola Tinubu in his Independence Day speech on October 1.
The CBN also provided clarification on several recent policy decisions. It explained the Monetary Policy Committee’s (MPC) decision to lower the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45%, stating this “seeks to ease the liquidity burden on commercial banks, thereby providing more room for productive lending and intermediation.”
To mitigate potential inflationary risks from public sector accounts held outside the Treasury Single Account (TSA), the MPC imposed a 75% CRR on these non-TSA deposits.
The bank noted that “This measure ensures that these deposits do not contribute to inflationary pressure, which could undermine the current momentum of disinflation.” Despite this change, the CBN guaranteed that commercial banks are prepared to meet all withdrawal obligations.
In a move to support economic recovery, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points, from 27.5% to 27%.
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The bank justified the cut, stating it was “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,” adding it would “help to support economic recovery efforts of the government without undermining macroeconomic stability.”
The central bank also adjusted the Standing Facilities corridor from an asymmetric +500/-100 basis points to a symmetric +250/-250 basis points around the MPR. This change aims to improve liquidity management in the interbank market.
The CBN concluded that these measures are intended to maintain disinflation while ensuring the banking sector has the necessary funds to support credit growth and the overall economy.
