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The Federal Government is seeking to attract more long-term investment into factories, infrastructure and local production as Nigeria’s capital inflows rose to $23.22 billion in 2025, highlighting the need to turn foreign investors’ interest into jobs and business expansion.
The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said Nigeria must strengthen its business environment and commercial justice system to sustain investor confidence and encourage more investment in productive sectors.
She spoke at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit in Lagos on Monday.
Oduwole said capital importation rose from $12.32 billion in 2024 to $23.22 billion in 2025, while the country’s foreign exchange reserves climbed above $50 billion.
However, the figures also exposed a gap between the amount of money entering the country and the level of investment going into businesses that can create jobs and increase local production.
In 2025, foreign portfolio investments accounted for about $19.74 billion, or 85 per cent of total capital inflows.
These investments were largely channelled into money-market instruments, bonds and shares, while foreign direct investment stood at $923 million.
Portfolio investments can provide funds for financial markets, but investors can withdraw them more quickly than money committed to building factories or expanding businesses.
Oduwole said investors needed confidence that their contracts would be respected, regulations would be clear and commercial disputes would be resolved fairly and without unnecessary delays.
“Investor confidence is not built by opportunity alone. Investors also consider the reliability and responsiveness of our institutions, the clarity of our regulations, the enforceability of contracts, and their ability to resolve commercial and investment disputes fairly and efficiently,” she said.
She said the government was working to attract investment into manufacturing, infrastructure, processing and other productive activities capable of generating employment and supporting economic growth.
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said arbitration and mediation could help businesses settle disputes without the cost and delays associated with prolonged court cases.
He disclosed that the government was reviewing the Arbitration and Mediation Act 2023 and developing a national policy on arbitration to strengthen Nigeria’s commercial dispute resolution system.
The Chief Judge of Lagos State, Justice Kazeem Alogba, said the Lagos Multi-Door Courthouse had facilitated the settlement or recovery of ₦86.85 billion over five years.
The development highlights the economic value of resolving disputes quickly, allowing businesses and individuals to regain access to funds that might otherwise remain tied up in litigation.
The government believes a more reliable commercial justice system will help protect investments, improve confidence and encourage investors to commit more money to Nigeria’s real economy.
For Nigeria, the next challenge is to ensure that rising capital inflows translate into more factories, stronger local businesses, wider employment opportunities and sustainable economic growth.
