The Central Bank of Nigeria (CBN) says Nigeria’s balance of payments (BOP) surplus fell to $2.67 billion in the fourth quarter (Q4) of 2025.
Data released by the Central Bank of Nigeria (CBN) on
Wednesday showed that the surplus fell from the $4.6 billion recorded in the
third quarter (Q3) of 2025.
“Nigeria’s overall balance of payments for Q4 2025 resulted
in a lower surplus of US$2.67 billion,” the apex bank said.
The BOP is a record of all financial transactions made
between a country and the rest of the world over a specific period — usually a
year or a quarter.
A surplus occurs when a nation gets more money from
international transactions (exports, income, financial inflows) than it pays
out, resulting in a net inflow of foreign currency.
The decline in the BOP position was reportedly driven
largely by a sharp decrease in the current account surplus, which dropped by
65.52 percent to $1.4 billion from $4.06 billion in Q3.
According to the report, “the current account balance
recorded a lower surplus of US$1.40 billion in Q4 2025,” reflecting pressures
from the trade and income components.
It also represents a significant drop from the $4.98 billion
posted in the corresponding period of 2024.
The CBN also said the decline was largely driven by a sharp
contraction in the goods account surplus, which dropped to $1.77 billion in Q4
2025 from $4.53 billion in the preceding quarter.
“Major contributors to the CAB are balance on goods account
decreased to US$1.77bn from US$4.53bn (-60.93%), decrease in crude oil exports
from US$8.52bn to US$6.77bn (20.54%), decrease in refined petroleum product
exports from US$2.29bn to US$1.97bn (13.97%), and increase non-oil imports from
US$7.02bn to US$8.77bn (24.93%),” CBN added.
In terms of goods account balance, the report showed that
total exports fell to $13.36 billion from $15.31 billion in Q3, mainly due to
lower earnings from crude oil, gas, and refined petroleum products.
Crude oil exports declined by 20.54 percent to $6.77
billion, gas exports dipped slightly to $2.24 billion from $2.31 billion,
refined petroleum product exports also fell by 13.97 percent to $1.97 billion.
The regulator said import pressures intensified as non-oil
imports rose by 24.93 percent to $8.77 billion, while refined petroleum product
imports increased to $2.48 billion.
Beyond trade, the CBN said Nigeria’s primary income account
recorded higher outflows, worsening the current account position.
“Net out-payments rose by 47.30 percent to $3.27 billion,
largely due to increased dividend and interest payments to foreign investors,”
the report added.
The report said the services account, however, showed a
slight improvement, with net outflows narrowing to $3.32 billion from $3.95
billion, supported by reduced spending on travel, communication, and other
service imports.
DIASPORA REMITTANCES INCREASED TO $6.21 BILLION
According to the report, the secondary income account,
largely driven by diaspora remittances, strengthened to $6.21 billion in Q4, up
from $5.7 billion in Q3.
The apex bank said personal transfers from Nigerians abroad
rose to $5.72 billion during the period.
On the financial account, the CBN said the economy recorded
higher net borrowing of $1.96 billion in Q4 2025, compared to $0.79 billion in
the previous quarter.
“Drivers of the financial account balance are; significant
decrease in portfolio investment assets, decreased Inflow of foreign direct
investment liabilities into the economy, increase in portfolio investment
liabilities, and accretion to the country’s reserve assets,” CBN added.
The report further noted that portfolio investment inflows
increased significantly to $5.27 billion from $2.51 billion, suggesting renewed
foreign interest in Nigerian financial assets.
However, the CBN said foreign direct investment (FDI)
inflows weakened to $1.11 billion, down from $1.46 billion in Q3.
The report said other investment liabilities recorded a
reversal of $1.68 billion, while Nigerian investments abroad saw outflows under
both direct and portfolio investment categories.
Further indicators showed that “net errors and omissions
narrowed to $3.36 billion from a negative $4.85 billion in Q3”.
Despite the weaker external position, the report showed that
the country’s external reserves rose to $45.75 billion at the end of December
2025, representing a 6.97 percent increase from $42.77 billion recorded at the
end of September.
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