By Ayomide Otitoju
Nigeria’s current account surplus rose 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 on Tuesday.
According to a Frequently Asked Questions (FAQ) published on its official website, the apex bank attributed the growth to sustained exchange rate stability, tighter monetary policy, and moderation in petroleum product prices. Gross external reserves also increased to $43.05 billion as of September 11, providing 8.28 months of import cover, marking the highest level in over six years.
“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 bank also noted that the reserves have risen by over $692 million in 18 days, surpassing the previous peak of $41.992 billion recorded on September 27, 2019. The increase was confirmed by President Bola Tinubu in his Independence Day address on October 1.
The CBN explained that the Monetary Policy Committee’s (MPC) recent reduction of the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45% aims to ease liquidity burdens and support productive lending. In addition, a 75% CRR was introduced for non-TSA public sector deposits to prevent inflationary pressures, while account holders retain full access to funds.
The apex bank also reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%, in response to a sustained decline in inflation over the past five months. The MPC also revised the Standing Facilities corridor from an asymmetric +500/-100 basis points to a symmetric +250/-250 basis points around the MPR, enhancing liquidity management and reducing overnight interest rate volatility.
“The CBN is committed to balancing inflation control with support for the real economy, particularly MSMEs, while ensuring a stable and robust financial system,” the bank said. It reaffirmed its role as a lender of last resort, providing short-term liquidity support to commercial banks to ensure systemic stability.
Overall, the CBN said, these measures are designed to sustain ongoing disinflation efforts, strengthen monetary policy transmission, and support economic recovery while maintaining market stability.
