In a dramatic turnaround, Nigeria shifted from $6.90 billion in borrowing to $320 million lending.
According to the Central Bank, the country actively invested more abroad than it received from foreign inflows.
Strong Turnaround In Lending
This swing represents one of the sharpest quarterly changes in Nigeria’s financial account in recent years.
Notably, foreign direct investment surged to $0.72 billion, signalling stronger confidence in Nigeria’s long-term economy.
Shifts In Investment Flows
At the same time, short-term portfolio inflows slowed, falling from $5.28 billion to $2.51 billion.
Consequently, investors favoured stable, long-term participation over quick speculative gains.
Meanwhile, Nigerians increased their foreign financial holdings, which pushed the financial account into positive territory.
Specifically, portfolio investment assets fell $0.82 billion, and direct investment assets reversed $0.16 billion.
In addition, other investment liabilities brought in $0.84 billion, while other investment assets reversed $0.86 billion.
Rising Reserves And Stability
As a result, foreign reserves climbed from $37.81 billion to $42.77 billion, a 13% rise in just three months.
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Furthermore, the overall balance of payments recorded a $4.60 billion surplus, after a small deficit in Q2.
Net errors and omissions narrowed sharply, improving clarity in cross-border financial flows.
These Q3 results show that Nigeria reduced its dependence on foreign debt, strengthening external sustainability.
Moreover, rising long-term FDI and reserve accumulation supported stability in foreign exchange markets.
However, large deficits in services and income continue to challenge full external balance.
Overall, Q3 2025 demonstrates progress and resilience, yet Nigeria must continue its journey toward full external stability.
