March 26, (THEWILL) — Foreign direct investment (FDI) accounted for less than 4 percent of total capital imported into Nigeria in 2025, underscoring the country’s continued dependence on short-term foreign funds despite a surge in overall inflows.
According to the latest report by the National Bureau of Statistics (NBS), total capital importation rose sharply to $23.22 billion in 2025, up from $12.32 billion in 2024.
Of this total, FDI contributed $923.01 million, representing 3.97 percent of aggregate inflows. This compares with $674.71 million in 2024, when FDI accounted for 5.48 percent. Although FDI increased by 36.8 percent year-on-year, its share declined by 1.51 percentage points, reflecting stronger growth in other capital categories.
Portfolio investment remained the dominant driver, rising to $19.74 billion in 2025 from $8.38 billion in 2024, more than doubling within a year.
The data underscores a structural imbalance in Nigeria’s capital inflows, with a growing reliance on portfolio investments, which are typically more volatile and sensitive to market conditions.
While rising inflows suggest improved investor sentiment, the relatively low contribution of FDI points to persistent challenges in attracting long-term, stable investment critical for sustainable economic growth and development.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
