Nigeria recorded a slight uptick in foreign direct investment (FDI) in 2025, but the figures show that long-term investments still make up only a small portion of the country’s overall capital inflows.
According to the National Bureau of Statistics, total capital importation into Nigeria rose sharply to $23.22 billion in 2025, compared to $12.32 billion in 2024. Despite this strong growth, FDI contributed just $923.01 million, representing less than 4 per cent of total inflows.
Although this marks a notable increase of about 36.8 per cent from the previous year’s $674.71 million, FDI’s share of total capital actually declined. This drop is largely due to the rapid surge in portfolio investments, which continued to dominate Nigeria’s investment landscape.
Portfolio inflows climbed significantly to $19.74 billion in 2025, more than double the $8.38 billion recorded a year earlier. This means short-term investments accounted for over 85 per cent of all capital brought into the country, further widening the gap between portfolio inflows and long-term investments like FDI.
A closer look at the data shows that FDI gradually improved as the year progressed. It rose from $126.29 million in the first quarter to $357.80 million in the fourth quarter, making the final months of the year the strongest period for direct investments. In fact, nearly 71 per cent of the total FDI recorded in 2025 came in the second half of the year, suggesting a late rebound in investor confidence.
Even with this improvement, the numbers highlight a persistent imbalance. In every quarter of 2025, portfolio investment alone exceeded the entire annual total of FDI, underlining how heavily Nigeria still relies on short-term capital.
Most of the FDI recorded during the year came in the form of equity investments, which accounted for over 94 per cent of the total. Other forms of capital remained relatively small, although they showed some growth compared to 2024, indicating a narrow expansion in the structure of foreign investments.
Reacting to the trend, Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the government has been actively engaging foreign investors and implementing policies aimed at improving the business climate. He expressed optimism that these efforts are beginning to yield results, especially in the oil and gas sector.
Lokpobiri noted that discussions have been held with major global energy companies, including Shell, Chevron, TotalEnergies, Eni and ExxonMobil, with indications that Nigeria remains a key destination for future investments.
Meanwhile, the Executive Vice President of NNPC Limited, Olalekan Ogunleye, pointed to new opportunities emerging from global energy market shifts. Speaking at the CERAWeek, he said tensions in the Middle East have increased demand for Nigeria’s liquefied natural gas, positioning the country as an attractive supplier to key markets.
He added that Nigeria LNG is expanding its capacity, with plans to complete a seventh production train by 2027, a move expected to boost exports and strengthen Nigeria’s role in the global energy market.
While the overall rise in capital inflows may signal renewed investor interest, the relatively low share of FDI suggests that long-term confidence in the economy is still evolving. For many analysts, the challenge remains how to convert short-term portfolio gains into more stable, long-term investments that can drive sustained economic growth.
