Nigeria’s external sector recorded a significant turnaround in the third quarter (Q3) of 2025, as the country posted an overall balance of payments (BOP) surplus of $4.60 billion, according to data released by the Central Bank of Nigeria (CBN). This marked a sharp improvement from the deficit recorded in the previous quarter.

In a statement issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, disclosed that domestic economic activity also strengthened in December 2025, with the Composite Purchasing Managers’ Index (PMI) rising to 57.6 points, well above the 50-point expansion benchmark.

The apex bank attributed the BOP improvement to a current account surplus of $3.42 billion, driven by stronger trade performance, steady diaspora remittances, increased financial inflows, and continued growth in external reserves.

According to the report, the goods account recorded a surplus of $4.94 billion, supported by higher export earnings. Crude oil exports rose to $8.45 billion, while exports of refined petroleum products increased by 44 percent to $2.29 billion, reflecting improved domestic refining capacity and Nigeria’s gradual shift toward becoming a net exporter of refined petroleum products.

Total goods exports stood at $15.24 billion, while imports of refined petroleum products declined by 12.7 percent, further strengthening the trade balance.

Workers’ remittances remained robust, with the secondary income account posting a surplus of $5.50 billion, including $5.24 billion in inflows from Nigerians in the diaspora.

The financial account also supported the positive outcome, as Nigeria recorded a net lending position of $0.32 billion. Foreign direct investment inflows rose to $0.72 billion, while portfolio investment inflows reached $2.51 billion, reflecting improved investor confidence and sustained foreign participation in domestic financial markets.

Nigeria’s external reserves increased 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.

The CBN noted that the Q3 2025 BOP performance reflects firmer external sector conditions, rising investor confidence, and the positive impact of reforms in the foreign exchange market, monetary policy operations, and the domestic energy sector.

In a separate update, the Bank reported that economic activity gained further momentum in December 2025, with the Composite PMI reaching 57.6 points, described as the strongest activity momentum in nearly five years.

Sectoral PMI readings showed agriculture at 58.5 points, industry at 57.0 points, and services at 51.9 points, indicating broad-based expansion across key sectors. The survey revealed that 32 out of 36 subsectors recorded growth in output, new orders, and employment.

The CBN attributed the improved PMI performance to ongoing macroeconomic stabilisation efforts, which continue to support job creation, production efficiency, and business confidence, reinforcing expectations of a stable growth outlook as Nigeria enters the new year.