Nigeria’s balance of payments surplus increased by approximately 47 percent to $3.51 billion in the second quarter of 2026, strengthening the country’s external position as foreign reserves climbed to an 18-year high.
The Central Bank of Nigeria (CBN) disclosed the improvement in its Monetary Policy Committee communiqué issued following the September 21 and 22 meeting.
According to the apex bank, the balance of payments surplus increased from $2.38 billion in the first quarter of 2026 to $3.51 billion in the second quarter.
This represents an increase of about $1.13 billion, or 47.5 percent, between the two quarters.
The improvement coincided with a substantial expansion in Nigeria’s current account surplus, which increased 67.92 percent to $7.54 billion in the second quarter from $4.49 billion in the first quarter.
The MPC cited the stronger balance of payments position and current account surplus as part of an improvement in Nigeria’s external sector fundamentals.
The development was accompanied by continued accumulation of foreign exchange reserves.
Gross external reserves stood at $55.25 billion as of September 18, 2026, the highest level recorded in 18 years, according to the CBN.
At that level, the reserves were sufficient to finance approximately 11.3 months of imports of goods and services, providing a stronger buffer against potential external shocks.
The MPC said the combination of robust external reserves, improving external sector fundamentals, moderating inflation and strengthening investor confidence demonstrated increasing resilience in the Nigerian economy.
Domestic economic activity also strengthened during the period.
Nigeria’s real Gross Domestic Product grew 4.43 percent in the second quarter, accelerating from 3.89 percent in the first quarter.
The non-oil sector expanded by 4.31 percent compared with 3.94 percent in the preceding quarter, supported by increased activity in information and communications technology, crop production, real estate, livestock, financial services and trade.
Oil-sector growth accelerated more sharply to 7.31 percent from 2.57 percent, with the CBN attributing the improvement to increased production and investment in the sector.
The Composite Purchasing Managers’ Index also increased to 52.7 points in August from 51.1 points in July, indicating further expansion in economic activity.
Nigeria’s stronger external position comes as inflation continues to moderate.
Headline inflation eased to 15.39 percent in August from 15.43 percent in July, while food inflation declined to 19.57 percent from 20.31 percent.
Core inflation moderated to 13.29 percent from 14.97 percent during the same period.
The improvement in the balance of payments and current account position formed part of the macroeconomic conditions considered by the MPC before resetting the Monetary Policy Rate to 23 percent and recalibrating its standing facilities corridor.
While the CBN expects domestic economic growth to remain resilient through the remainder of 2026, it cautioned that prolonged geopolitical tensions in the Middle East could continue to pose risks to the economic outlook.
