Latest data from the National Bureau of Statistics (NBS) has shown a modest rise in Foreign Direct Investment (FDIs) into Nigeria in 2025, less than 4 per cent.
Although the latest capital importation report noted that Nigeria recorded total capital importation of $23.22 billion in 2025, up sharply from $12.32 billion in 2024, FDIs contributed just $923.01 million.
The aggregate inflows represent 3.97% increase when compared with $674.71 million in 2024, when FDI accounted for 5.48% of total capital importation.
This means FDI rose by $248.30 million year on year, or about 36.8%, but its share of total inflows still fell by 1.51 percentage points as faster growth in portfolio investment widened the gap.
Portfolio investment remained the clear driver of capital importation in 2025, standing at $19.74 billion, more than double the $8.38 billion recorded in 2024.
This means portfolio investment accounted for 85.03% of total capital importation in 2025, up from 68.00% in 2024.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on Wednesday said the government has wooed investors to invest in the country, saying government policies have secured the right environment for them to thrive.
Quarterly data from the NBS report showed that portfolio investment made up 92.25% of total capital importation in the first quarter of 2025, before easing to 82.02% in the second quarter, 80.70% in the third quarter, and rising again to 85.14% in the fourth quarter.
By contrast, FDI’s quarterly contribution remained weak throughout the year. It accounted for 2.24% of total inflows in Q1 2025, 2.79% in Q2, 4.93% in Q3, and 5.55% in Q4.
The contrast becomes even clearer when viewed in nominal terms. In 2025, portfolio inflows of $19.74 billion were more than 21 times the size of FDI inflows at $923.01 million.
On a quarterly basis, FDI rose across 2025 from $126.29 million in Q1 to $142.67 million in Q2, then climbed sharply to $296.25 million in Q3 before reaching $357.80 million in Q4.
Q4 was the strongest quarter for FDI in 2025 and accounted for roughly 38.8% of the full-year FDI total.
Combined, Q3 and Q4 delivered $654.05 million, meaning about 70.9% of all FDI recorded in 2025 came in the second half of the year.
The full-year FDI total of $923.01 million was still below the value of portfolio investment recorded in each individual quarter of 2025. Q1 portfolio inflows alone stood at $5.20 billion, while Q4 reached $5.49 billion.
Within FDI, equity capital remained the dominant component. FDI equity stood at $868.29 million in 2025, accounting for about 94.1% of total FDI.
This was up strongly from $419.41 million in Q4 2024 to $321.96 million in Q4 2025 on a quarterly end-point basis, while annual equity inflows more than doubled from the visible 2024 quarterly pattern to a 2025 total of $868.29 million.
“Other capital” under FDI remained relatively small, but it increased materially in 2025. It rose to $54.72 million from $9.20 million in 2024. Quarterly figures show this component moved from $1.98 million in Q1 to $2.26 million in Q2, then rose to $14.64 million in Q3 and $35.84 million in Q4, suggesting that even the improvement in FDI was still narrow and concentrated.
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‘Nigeria Ready For Investments’
Lokpobiri, who also spoke at the CERAWeek, noted that Nigeria’s crude oil is one of the best in the world.
He specifically said that his ministry has held talks with major International Oil Companies (IOCs) such as Shell, Chevron, Total, Eni, and ExxonMobil.
“And you know, Nigeria’s crude is one of the best in the world. I believe that the message is syncing well and all of them have made commitments to say, look, when they are prioritising investment destinations, Nigeria will be the preferred destination,” the minister told Channels Television on the sidelines of the conference.
He added that Nigeria was ready for business, calling on investors to partner with the government.
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The Executive Vice President of the Nigerian National Petroleum Company (NNPC) Limited, Olalekan Ogunleye, also said that the ongoing crisis in the Middle East has opened up commercial opportunities for Nigeria, as the country sees stronger demand for its liquefied natural gas cargoes.
Ogunleye, who spoke at the CERAWeek energy conference in Houston, noted that buyers are increasingly looking to Nigeria because of its proximity to key consuming nations and the scale of its gas reserves.
Nigeria LNG (NLNG), in which NNPC is the largest shareholder, can export up to 22 million metric tons per year and is building a seventh production train scheduled for completion in 2027.
“We are right in the middle of the market. We are 10 sailing days from Europe, close to the Atlantic Basin, and close to Asia,” Ogunleye said. “We see commercial opportunities on top of the fact that we have the most gas reserves in Africa.”
