Foreign Direct Investment (FDI) into Nigeria rose modestly in 2025, increasing by less than 4 per cent in dollar terms but falling as a proportion of total capital importation, according to data from the National Bureau of Statistics (NBS).
The country’s total capital importation surged to $23.22 billion from $12.32 billion the previous year, driven overwhelmingly by portfolio investment. FDI contributed $923.01 million, a rise of $248.30 million or 36.8% compared to 2024. However, its share of total inflows declined to 3.97% from 5.48%, as portfolio investment—which accounts for the vast majority of capital flows—more than doubled to $19.74 billion, comprising 85.03% of the total.
quarterly figures reveal a steady, though limited, increase in FDI throughout 2025. It began at $126.29 million in Q1 (2.24% of total) and peaked at $357.80 million in Q4 (5.55%). The second half of the year dominated, with Q3 and Q4 together accounting for 70.9% of the annual FDI total. Even in its strongest quarter, FDI inflows were surpassed by portfolio investment in every quarter of the year.
Within the FDI category, equity capital was the primary driver, totaling $868.29 million, or 94.1% of all FDI. A smaller “other capital” component rose to $54.72 million from $9.20 million in 2024, with its growth concentrated in the latter half of the year.
The significant disparity highlights Nigeria’s reliance on short-term portfolio flows over longer-term foreign direct investment. Government officials, however, framed the overall capital surge as a sign of improved investor confidence.
Speaking at the CERAWeek energy conference, Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri stated that government policies have created a conducive environment for investment. He noted ongoing engagements with major International Oil Companies and praised the quality of Nigeria’s crude oil, asserting that the country is now a “preferred destination” for prioritised investments.
This sentiment was echoed by Olalekan Ogunleye, Executive Vice President of the Nigerian National Petroleum Company (NNPC) Limited. He pointed to geopolitical shifts, such as the Israel-Iran conflict, as creating commercial opportunities for Nigeria, particularly in liquefied natural gas (LNG). He cited Nigeria’s strategic location and substantial gas reserves, with NLNG—where NNPC is the largest shareholder—expanding capacity through a new production train due online in 2027.
While total capital inflows grew substantially in 2025, the composition underscores a challenge: converting volatile portfolio investment into stable, job-creating foreign direct investment remains a work in progress. The government’s focus on the oil and gas sector suggests a strategic push to attract longer-term capital into key export industries.
