MORGANABLE BUSINESS / MARKET
Nigeria attracted about $23 billion in capital importation in 2025, while its foreign exchange reserves rose above $50 billion, the Federal Government has said.
Akure —
Nigeria attracted about $23 billion in capital importation in 2025, while its foreign exchange reserves rose above $50 billion, the Federal Government has said. The figures suggest stronger foreign participation in the economy and a larger buffer against external shocks.
However, officials say lasting growth will depend on improvements to the business environment and greater confidence in commercial institutions.
Minister of Industry, Trade and Investment Jumoke Oduwole presented the figures on Monday, October 19, at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit in Lagos.
She said capital importation increased from more than $12 billion in 2024 to $23 billion in 2025. She also highlighted stronger inflows in early 2026 and called for faster ways to resolve commercial disputes.
According to Oduwole, capital importation rose by 83 per cent year-on-year, from $5.5 billion in the first quarter of 2025 to more than $10 billion in the first quarter of 2026.
She said the economy grew by more than four per cent in 2025 and maintained growth above that level in the first half of 2026. Inflation fell to 14.63 per cent in September 2026, from 33.2 per cent in 2024.
CAPITAL INFLOWS RISE
Data from Nigeria’s capital importation report show that total inflows reached approximately $23.22 billion in 2025, up from $12.32 billion in 2024.
The increase reflected stronger foreign participation in financial markets, but the type of investment matters as much as the overall amount.
Capital importation includes funds that foreign investors bring into a country through portfolio investment, direct investment and other financial transactions.
Foreign portfolio investment dominated Nigeria’s 2025 total, accounting for about 85 per cent of inflows. Investors put money into instruments such as treasury bills, bonds and shares.
Foreign direct investment involves longer-term commitments, such as building facilities, expanding operations or acquiring a lasting stake in a business.
Nigeria attracted about $923 million in foreign direct investment in 2025, representing roughly four per cent of total capital importation. Although the amount increased from 2024, it remained a small share of the overall inflow.
This gap highlights a key challenge for policymakers. Portfolio funds can provide liquidity, but long-term investment is more likely to support production, technology transfer and sustained job creation.
Therefore, Nigeria needs to attract more businesses willing to establish operations, expand capacity and serve local and international markets.
RESERVES STRENGTHEN THE EXTERNAL BUFFER
Nigeria’s foreign exchange reserves have also risen above $50 billion, according to the government. Central Bank of Nigeria figures put gross reserves at about $55.08 billion on October 9, following a revision to previously displayed data. Reserves are foreign assets held by the monetary authorities.
A stronger reserve position can help Nigeria meet external obligations, pay for essential imports and manage pressure on the naira.
It can also reassure investors that the country has a larger cushion against sudden changes in global financial conditions.
Nevertheless, higher reserves do not guarantee a stable exchange rate or immediately reduce prices. Currency movements also depend on foreign-exchange demand, export earnings, monetary policy, investor behaviour and confidence in the economy.
COMMERCIAL JUSTICE KEY TO INVESTOR CONFIDENCE
Despite the improved figures, Oduwole warned that investors look beyond headline economic indicators. They also assess institutional reliability, regulatory clarity, contract enforcement and the speed of commercial dispute resolution.
Uncertainty in any of these areas can discourage companies from committing capital.
A business may see strong demand and attractive returns in Nigeria, yet hesitate if it expects a contract dispute to take years to resolve.
Delays can tie up money, raise legal costs and disrupt operations. For that reason, efficient commercial justice forms part of the country’s economic competitiveness.
Attorney-General of the Federation and Minister of Justice Lateef Fagbemi said arbitration and mediation could strengthen trust and reduce investment risks.
He also pointed to work on reviewing the arbitration framework and developing a national policy. The government wants Nigeria to become a leading arbitration centre in Africa.
The Chief Judge of Lagos State, Justice Kazeem Alogba, said the Lagos Multi-Door Courthouse had facilitated settlements or recoveries worth ₦86.85 billion over five years.
The figure illustrates how dispute resolution can help businesses and individuals regain access to funds that might otherwise remain tied up in unresolved cases.
TURNING INFLOWS INTO LASTING GROWTH
The next challenge is to turn stronger inflows and reserves into investment that expands productive capacity. Nigeria needs capital for manufacturing, agriculture, infrastructure, technology and export-focused businesses.
Investment in these areas can create jobs, improve supply chains and increase local production.
However, investors also weigh practical costs. Unreliable electricity, expensive transport, limited access to credit and administrative delays can make projects harder to operate.
Clearer rules, consistent policies and stronger institutions could reduce those obstacles and encourage companies to make longer-term commitments.
Inflation’s decline offers some relief, but many households and companies still face high living and operating costs. Sustained price stability will matter more than a single monthly reading.
Likewise, higher reserves will have greater significance if Nigeria maintains export earnings and meets external obligations without renewed pressure.
Officials say progress will require transparent reporting, steady policies and closer cooperation among regulators, courts, businesses and investors across Nigeria over the coming years.
Overall, the $23 billion capital-importation figure and reserves above $50 billion offer positive signals about Nigeria’s external position.
Yet the composition of inflows shows why the country cannot focus on volume alone. More direct investment, stronger commercial protections and a dependable operating environment will be essential.
If Nigeria strengthens its institutions and channels more capital into productive enterprises, it can improve the chances that current momentum will translate into broader economic growth, more jobs and stronger exports.
