Nigeria's FDI Reaches $565.21M in 2025 Amid Capital Surge

In the first nine months of 2025, Nigeria attracted $565.21 million in Foreign Direct Investment (FDI), which represents just 3.3% of the total capital inflows of $16.7 billion. This data, released by the National Bureau of Statistics (NB), indicates that while there has been a broad surge in overall capital inflows, the majority of these funds are driven by short-term portfolio investments.

The trend observed in the second and third quarters of 2025 mirrors similar patterns from the first quarter, raising concerns about Nigeria's ability to attract long-term investments. The FDI figure, which is a modest improvement compared to previous quarters, reflects a gradual recovery but remains significantly overshadowed by portfolio investments, which accounted for $4.85 billion in the same quarter.

The reliance on short-term investments rather than long-term growth support is evident, as Nigeria's capital imports remain elevated throughout the first three quarters of 2025, primarily driven by foreign portfolio investors attracted by high domestic interest rates and yields on treasury bills and bonds.