Nigeria moved into a net lending position of $320 million in the third quarter of 2025, marking a sharp turnaround from a net borrowing position of $6.90 billion in Q2, the Central Bank of Nigeria (CBN) has said.
The apex bank disclosed this in its latest Balance of Payments (BoP) Highlights, noting that the financial account shifted into surplus as the economy acquired more foreign financial assets than it received from external investments and borrowings.
According to the CBN, “the financial account recorded a net lending position of US$0.32 billion in Q3 2025, as against a net borrowing of US$6.90 billion in Q2 2025,” reflecting accretion to reserves and higher asset acquisition abroad.
The swing represents one of the steepest quarterly improvements in Nigeria’s external financial position in recent years.
The report attributed the improvement partly to stronger foreign direct investment (FDI), with FDI liabilities rising to $0.72 billion in Q3 from $0.09 billion in the previous quarter, signalling increased long-term investor confidence.
In contrast, portfolio investment inflows moderated to $2.51 billion, down from $5.28 billion in Q2, indicating reduced reliance on short-term capital flows.
On the asset side, portfolio investment assets recorded an outflow of $0.82 billion, while direct investment assets showed a reversal of $0.16 billion. Other investment liabilities posted inflows of $0.84 billion, alongside a reversal of $0.86 billion in other investment assets, jointly supporting the net lending position.
Nigeria’s external buffers also strengthened significantly. External reserves rose by 13.12 per cent to $42.77 billion at end-September 2025, compared with $37.81 billion at end-June.
Overall, the balance of payments recorded a surplus of $4.60 billion in Q3, reversing a deficit of $0.27 billion in Q2. Net Errors and Omissions narrowed sharply to -$3.09 billion from -$12.71 billion in the preceding quarter.
Analysts view the $320 million net lending position as a positive signal for external sustainability, reflecting reduced dependence on foreign borrowing and speculative inflows, alongside improved reserve accumulation.
However, the CBN cautioned that the surplus remains modest, with structural pressures from service-sector and income-account deficits continuing to weigh on Nigeria’s external position.
