Nigeria Records $320 Million Net Lending Position in Q3 2025, CBN Reports

In a significant reversal of its external financial posture, Nigeria transitioned to a net lending position of $320 million in the third quarter of 2025, according to official data from the Central Bank of Nigeria (CBN). This marks a sharp turnaround from a net borrowing position of $6.90 billion recorded in the second quarter of the same year. A net lending position indicates that the country acquired more foreign financial assets, including reserve accumulation, than it received from foreign investments and borrowings during the period.

Drivers of the Financial Account Turnaround

The CBN report attributed the shift to several key movements in capital flows. A primary factor was a notable rise in foreign direct investment (FDI) liabilities, which increased to $0.72 billion in Q3 2025 from $0.09 billion in the previous quarter. This surge suggests stronger participation by long-term equity investors, a positive signal for the economy’s fundamentals. Conversely, portfolio investment inflows moderated to $2.51 billion from $5.28 billion, indicating a shift in capital composition. On the asset side, Nigerian entities increased their holdings of foreign financial assets, with portfolio investment assets recording an outflow of $0.82 billion and other investment flows showing significant reversals, collectively pushing the financial account into positive territory.

Strengthened External Reserves and Balance of Payments

Concurrent with this shift, Nigeria’s external buffers saw material strengthening. The nation’s external reserves rose to $42.77 billion by the end of September 2025, a 13.12% increase from the $37.81 billion recorded at the end of June. This accretion to reserves contributed directly to the net lending outcome. Furthermore, the overall balance of payments recorded a substantial surplus of $4.60 billion in Q3 2025, rebounding from a deficit of $0.27 billion in Q2. The category for Net Errors and Omissions, which captures unrecorded cross-border transactions, also narrowed considerably.

The combination of a net lending position, a rising reserve base, a balance of payments surplus, and improved FDI inflows points to a more stable external-financing backdrop for Nigeria during the quarter. While portfolio flows softened, the increase in longer-term investment and the accumulation of assets abroad underscore a notable change in the country’s financial interactions with the global system.