Nigeria has recorded a rise in its current account surplus to $5.28 billion in the second quarter of 2025, up from $2.85 billion in Q1.
The Central Bank of Nigeria (CBN) disclosed this on Tuesday in a Frequently Asked Questions published on its official website.
According to the apex bank, the increase reflected a stronger external sector resilience and improved foreign exchange inflows.
The gross external reserves also rose to $43.05 billion as of September 11, providing 8.28 months of import cover.
“The growth in external reserves serves as a source of confidence to citizens, foreign and local investors, and other economic agents,” the CBN stated.
It attributed the improvement to sustained exchange rate stability, tighter monetary policy, and a moderation in petroleum product prices, all of which have contributed to a more favorable balance of payments outlook.
According to the latest data from the CBN, the country’s external reserve has increased by over $692 million in 18 days. It also shows that the reserve has been on an upward swing since the 14th of July 2025.
The closest the external reserve has gotten to the present figure was on September 27, 2019, when it hit $41.992 billion.
However, Nigeria’s external reserves surpassed the $42 billion mark as of Thursday, September 25, 2025, the highest in over six years.
The increase was also confirmed by President Bola Tinubu in his Independence Day address to Nigerians on October 1.
The CBN’s FAQ also explained why the Monetary Policy Committee (MPC) recently reduced the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45%.
“The reduction seeks to ease the liquidity burden on commercial banks, thereby providing more room for productive lending and intermediation,” the CBN explained.
To counter excess liquidity from public sector accounts outside the Treasury Single Account (TSA), the MPC also introduced a 75% CRR on non-TSA public sector deposits.
“This measure ensures that these deposits do not contribute to inflationary pressure, which could undermine the current momentum of disinflation,” the bank noted. Despite the adjustment, the CBN assured that account holders will retain full access to their funds, with commercial banks equipped to meet all legitimate obligations.
The CBN emphasised its commitment to balancing inflation control with support for the real economy, particularly MSMEs.
“We are using conventional monetary policy tools to anchor inflation expectations while ensuring a stable and robust financial system,” the bank said. By maintaining market stability, financial institutions are better positioned to allocate surplus funds to deficit segments of the economy.
The bank reiterated its role as a lender of last resort, providing short-term liquidity support to commercial banks through its Standing Lending Facility. This ensures that banks can meet customer obligations while maintaining systemic stability.
Search on Ojoojoo.com Nigeria's First Search Engine ...For More About This Post: Tax Law Will Provide Relief For Low-Income Earners, Tinubu Assures Nigerians
Why We Reduced Monetary Policy Rate By 50 Basis Points
The CBN also provided clarity on its decision to reduce the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%.
The move was announced at the MPC meeting held last week.
“The MPC lowered the MPR by 50 basis points to 27% 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,” the bank stated.
“Also, the reduction in the policy rate by the MPC would help to support economic recovery efforts of the government without undermining macroeconomic stability.”
In addition to the rate cut, the CBN announced a revision to the Standing Facilities corridor, narrowing it from +500/-100 basis points to a symmetric +250/-250 basis points around the MPR.
This adjustment marks a shift from an asymmetric to a symmetric corridor, aimed at improving liquidity management and reducing volatility in overnight interest rates.
“Standing facilities refer to monetary policy instruments that help the CBN to provide or mop overnight liquidity in the banking system,” the bank explained.
The two key instruments—the Standing Lending Facility (SLF) and the Standing Deposit Facility (SDF)—allow banks to borrow or deposit excess liquidity overnight at designated rates.
“This implied that the CBN is currently operating a symmetric corridor in contrast to the asymmetric type,” the statement added.
The central bank emphasised that the corridor adjustment is designed to enhance interbank market efficiency and strengthen monetary policy transmission.
“Overall, this would encourage more active interbank trading and enhance monetary policy transmission,” the CBN concluded.
These measures, the CBN said, were carefully balanced to sustain ongoing disinflation efforts while ensuring the banking sector has adequate liquidity to support credit expansion and economic growth.
The post Nigeria’s Current Account Surplus Rose To $5.28bn Q2 2025 — CBN appeared first on Channels Television.