The Central Bank of Nigeria (CBN) spent about $7.53 billion intervening in the foreign exchange market in 2025 to stabilise the naira, helping the local currency record a 7.14 per cent year-on-year appreciation at the official window.
Data showed that the scale of the CBN’s forex interventions outpaced the annual increase in Nigeria’s gross external reserves, underscoring the intensity of efforts to defend the naira amid volatile global and domestic conditions.
Nigeria’s gross external reserves nonetheless rose by $4.62 billion, supported by inflows from Eurobond issuances, diaspora remittances and increased crude oil production.
MarketForces Africa reported that the first half of 2025 was marked by significant capital outflows from Nigeria’s financial markets, triggered by a surge in United States tariffs that prompted global investors to shift towards safe-haven assets.
In response, the CBN stepped up its foreign exchange interventions, deploying an estimated $5 billion to meet demand from foreign portfolio investors seeking to exit the local market.
At the official foreign exchange window, the naira closed at N1,435.75 to the dollar, reflecting the 7.14 per cent annual gain attributed to sustained central bank support. Analysts projected that the official exchange rate could close the year around N1,450, while more bearish expectations placed the spot rate as weak as N1,500 per dollar.
Nigeria’s external position also improved markedly in the third quarter of 2025, with the country recording a balance of payments surplus of $4.60 billion, a sharp reversal from the deficit posted in the previous quarter, according to data released by the CBN.
The turnaround was driven by a current account surplus of $3.42 billion, supported by stronger trade performance, resilient remittance inflows, higher financial flows and continued accumulation of external reserves.
The CBN said the goods account remained firmly in surplus at $4.94 billion, reflecting higher export earnings during the period. Crude oil exports rose to $8.45 billion, while exports of refined petroleum products jumped by 44 per cent to $2.29 billion, highlighting progress in domestic refining capacity and Nigeria’s gradual shift from a net importer to a net exporter of refined petroleum products.
Total goods exports amounted to $15.24 billion, while imports of refined petroleum products fell by 12.7 per cent, leading to a stronger trade balance.
Workers’ remittances continued to provide critical support, with the secondary income account posting a surplus of $5.50 billion, including $5.24 billion in remittance inflows from Nigerians in the diaspora.
The financial account also contributed positively to the overall balance of payments, as Nigeria recorded a net lending position of $0.32 billion. Foreign direct investment inflows increased to $0.72 billion, while portfolio investment inflows remained robust at $2.51 billion, reflecting improved investor sentiment and sustained non-resident participation in domestic financial instruments.
Nigeria’s external reserves climbed to $42.77 billion at the end of September 2025, up from $37.81 billion at the end of June, strengthening the country’s external buffers.
According to the CBN, the third-quarter 2025 balance of payments outcome highlights improving external sector fundamentals, firmer investor confidence and the continuing impact of reforms in the foreign exchange market, monetary policy implementation and the domestic energy sector.
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