WorldStage– Foreign Direct Investment (FDI) to Nigeria dipped in the first nine month of 2025 while Foreign Portfolio investment (FPI) rose in the same period, signifying a rise in capital importation analysts view with caution.
According to the latest data from the Nigeria Bureau of Statistics (NBS), the FDI, a major pillar of an economy, recorded $565.21 million in Q3 of last year. The second quarter of 2024 recorded $148.98 million
The FPI, however, jumped 226.09 percent to $14.25 billion in the same period.
The 27-percent interest rate and other policies, including fuel subsidy removal and the floating of the FX, have endeared portfolio investments in Nigeria to foreign investors. But the raft of reforms hasn’t done much for FDIs.
Nigeria last time experienced a significant FDI, $1 billion, in 2020.
The short-term shock the reforms triggered, infrastructure deficits, insecurity still worry direct investors considering Nigeria as their investment destination.
Yet, according to analysts, FPIs, too, remain vulnerable. Any policy vacillation can send investors running to safety, and pulling back their funds.
The FPI contribution, however, shored up capital importation to $14.25 billion in 2025, from $7.2 billion in the same period in 2024, and $3.90 billion in 2023. It was the biggest volume in a decade.
In the NBS report, the banking sector recorded the highest inflow, $3.14 billion, representing 52.25 percent of total capital imported.
Standard Chartered Bank Nigeria led with $2.11 billion, Stanbic IBTC Bank followed with $1.78 billion, and Citibank Nigeria Limited with $561.40 million.
The financing sector recorded $1.85 billion.
By country of origin, the UK exported $2.93 billion, 48.80 percent of the capital imported. And the US followed with $950.47 million.
