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By Chinwendu Obienyi
Foreign direct investments (FDIs) into Nigeria surged to $720 million in the third quarter of 2025, a sevenfold jump from $90 million in the previous quarter, the Central Bank of Nigeria (CBN) has revealed.
Compared with the same period last year, when FDI stood at $570 million, the inflow rose by 26 per cent, making Q3 the strongest quarter for long-term investment in 2025.
The rise in FDI comes as Nigeria’s external finances showed significant improvement. The CBN reported an overall balance-of-payments surplus of $4.6 billion in the quarter, while foreign-exchange reserves climbed to $42.77 billion at the end of September from $37.81 billion three months earlier.
The central bank’s data also showed that the financial account swung into a net lending position of $320 million, compared with net borrowing of $6.9 billion in the second quarter. “The shift reflects stronger direct investment inflows, improved participation in domestically issued instruments earlier in the year, and higher reserve accumulation,” the CBN said.
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Meanwhile, portfolio inflows—short-term investments in stocks and bonds—fell to $2.51 billion from $5.28 billion in Q2, highlighting a move away from speculative money toward more stable, long-term investments. FDIs are considered a key gauge of investor confidence because they involve ownership stakes and reinvested earnings, rather than short-term trading.
Despite the gains, challenges remain. Repatriation of reinvested earnings by domestic banks on their foreign holdings widened the primary income deficit to $2.95 billion in Q3, showing that profit outflows still weigh on the economy.
The country also recorded a current-account surplus of $3.42 billion, supported by higher crude-oil and refined-product exports as well as steady diaspora remittances. Crude exports brought in $8.45 billion, refined products added $2.29 billion, and fuel imports continued to decline. These trends bolstered foreign-exchange liquidity, a critical factor for attracting long-term investment.
Looking ahead, the CBN projects public debt could rise slightly next year. “The public debt is anticipated to remain on a sustainable path in 2026. It is projected at 34.68 per cent of GDP by end-2026 compared with 33.98 per cent at the end of June 2025,” the bank said. The apex bank added that improved exchange-rate stability is expected to reduce the impact of currency revaluation, which has been the main driver of debt growth in recent years.
Analysts see these developments as a sign that Nigeria is regaining investor confidence after several quarters of weak inflows. The combination of higher long-term investment, robust export receipts, and stronger reserves provides a foundation for more stable growth, even as the country monitors debt levels and external risks.
