Foreign direct investment (FDI) into Nigeria surged to $720 million in the third quarter of 2025, a 700 percent increase from $90 million in Q2, the Central Bank of Nigeria (CBN) said in its Balance of Payments (BoP) Highlights for Q3 2025.
The quarterly inflow is also 26.3 percent higher than the $570 million recorded in Q3 2024, signalling a measured return of long‑term foreign capital after a period of subdued investment amid macroeconomic uncertainty and low investor confidence.
CBN data show direct investment liabilities — the measure of FDI into the economy — stood at $0.72 billion in Q3 2025 compared with $0.09 billion in the previous quarter. The central bank attributed the rise to stronger equity participation and reinvestment of earnings by foreign investors. “Direct investment into the economy recorded a much higher inflow of $0.72bn in Q3 2025 as against $0.09bn recorded in Q2 2025,” the CBN said.
The rebound in FDI occurred alongside an overall improvement in Nigeria’s external position. The country posted a balance‑of‑payments surplus of $4.60 billion for the quarter, while gross external reserves increased to $42.77 billion at end‑September 2025, up from $37.81 billion at end‑June 2025.
The financial account swung to a net lending position of $0.32 billion in Q3, reversing a net borrowing position of $6.90 billion in Q2 — a development the CBN linked to higher direct investment liabilities, improved participation in domestically issued financial instruments earlier in the year, and increased accumulation of reserve assets.
In contrast to the FDI gains, portfolio investment inflows moderated to $2.51 billion in Q3 from $5.28 billion in Q2, reflecting a decline in short‑term, speculative capital flows. Analysts said the divergence is positive from a structural standpoint because FDI typically represents more stable, long‑term commitments.
Despite the improved headline numbers, the BoP report highlighted persistent pressures on the current account from profit repatriation and income outflows. Repatriation of reinvested earnings by domestic banks on their foreign assets contributed to a wider primary income deficit of $2.95 billion in Q3. Nonetheless, Nigeria recorded a current account surplus of $3.42 billion for the quarter, supported by stronger export receipts and steady diaspora remittances.
Crude oil export earnings rose to $8.45 billion, while exports of refined petroleum products amounted to $2.29 billion as imports of refined fuel continued to decline. The CBN said the combination of improved export performance, higher reserves and stronger FX liquidity helped underpin the recovery in FDI.
While the Q3 uptick represents a notable improvement, FDI inflows remain modest relative to Nigeria’s long‑term investment potential and historical highs. The CBN’s figures nevertheless offer cautious optimism that foreign capital restoration may be gaining traction.
