External reserves hit six-year high, as current account surplus surges to $5.28bn

Nigeria’s external sector demonstrated strong resilience in the second quarter of 2025, according to the Central Bank of Nigeria (CBN).

The current account surplus surged to $5.28 billion in Q2, almost doubling the $2.85 billion recorded in Q1, reflecting improved foreign exchange inflows.

The apex bank, in an update on its official website, disclosed that gross external reserves climbed to $43.05 billion as of September 11, providing 8.28 months of import cover.

By September 25, reserves had further increased, reaching their highest level in over six years, a gain of over $692 million in just 18 days. The last time reserves were near this mark was in September 2019.
The CBN attributed the improved balance of payments outlook to exchange rate stability, tighter monetary policy, and a moderation in petroleum product prices. The bank stated that the growth in external reserves provides a crucial source of confidence for citizens, as well as foreign and local investors.

On monetary policy, the CBN explained the rationale behind the Monetary Policy Committee's (MPC) recent move to reduce the Cash Reserve Ratio (CRR) for commercial banks from 50 per cent to 45 per cent. This adjustment aims to ease liquidity constraints and boost lending to productive sectors.

Conversely, to neutralize excess liquidity stemming from non-Treasury Single Account (TSA) public sector deposits, the MPC introduced a stringent 75 per cent CRR requirement on such funds. The bank clarified that this measure prevents these deposits from fueling inflation, thereby supporting the current momentum of disinflation.

The CBN reassured the public that commercial banks remain capable of meeting all legitimate obligations, emphasizing its commitment to curbing inflation while stimulating real sector growth, particularly for MSMEs.