Nigeria recorded a strong rise in foreign capital inflows in 2025, but long-term investment into the real economy remained limited, according to new data from the National Bureau of Statistics.
Total capital inflow almost doubled from $12.32 billion in 2024 to reach $23.22 billion. Foreign direct investment, at $923 million, made up less than 4% of all inflows, though.
Most of the capital came from portfolio investments, which jumped to $19.74 billion and accounted for more than 85 per cent of all inflows.
Unlike direct investment connected to factories, infrastructure, and job creation, these funds are usually short-term and more sensitive to market conditions.
Though foreign direct investment (FDI) climbed by around 30 per cent from the prior year, its share fell as portfolio inflows increased more quickly. Data further indicate that the second half of 2025 saw most of the direct investment registered, with the last quarter adding the most.
Although the rise in overall inflows indicates revived foreign interest in Nigeria, The News Chronicle notes that the prevalence of short-term capital emphasizes continuing doubts about investor confidence in the wider economy.
Analysts say the trend underscores the need for policies that attract more stable and productive investments, as reliance on portfolio flows could expose the economy to sudden reversals driven by global financial shifts.
