Nigeria recorded a rare external turnaround in Q3 2025, shifting from heavy borrowing to a net lending position.
Nigeria moved into a net lending position of $320 million in Q3 2025, reversing a $6.90 billion net borrowing recorded in Q2, according to the Central Bank of Nigeria’s Balance of Payments data. A net lending position means the country invested more funds abroad, including building reserves, than it received from foreign borrowing and investments.
The improvement was driven by stronger foreign direct investment, with FDI liabilities rising to $0.72 billion from $0.09 billion in the previous quarter. At the same time, portfolio investment inflows declined, signalling reduced reliance on short-term capital.
Nigeria’s external reserves rose 13.1% to $42.77 billion, while the overall balance of payments posted a $4.60 billion surplus. Errors and omissions also narrowed sharply, pointing to better tracking of cross-border flows.
Analysts view the shift as positive for external sustainability and FX stability, though structural pressures from services and income deficits remain.
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