Nigeria's Q4 2025 Capital Import Report Highlights FPI Risks

The National Bureau of Statistics released Nigeria's capital import report for Q4 2025, indicating a total inflow of $6.443 billion, a 26.61% increase from $5.089 billion in Q4 2024. Foreign portfolio investment (FPI) accounted for $5.49 billion, representing 85.14% of total inflows, while foreign direct investment (FDI) was only $357.8 million, or 5.55%.

This disparity highlights the preference for short-term liquid investments over long-term projects. FPI allows investors to quickly move funds, contrasting with FDI, which is often tied to assets like land and factories and requires longer commitment periods.

The report emphasizes the need for Nigeria to balance its capital import strategy, as heavy reliance on FPI poses risks, such as potential rapid capital flight. Minister of Power Adebayo Adelabu noted the necessity for $100 billion to fund Nigeria's power sector, underscoring the importance of attracting long-term investments to support infrastructure and economic growth.