Nigeria’s FDI Jumps 700% To $720m In Q3 — CBN

Foreign Direct Investment (FDI) inflows into Nigeria rose sharply to $720m in the third quarter of 2025, marking a 700 per cent increase quarter-on-quarter from the $90m recorded in Q2 2025, according to the Central Bank of Nigeria (CBN).

The surge, disclosed in the CBN’s Balance of Payments (BoP) Highlights for Q3 2025, represents the strongest quarterly FDI performance so far this year and a notable rebound after several quarters of subdued inflows amid lingering concerns over macroeconomic risks and investor confidence.

On a year-on-year basis, FDI inflows were also higher than the $570m posted in Q3 2024, translating to a 26.3 per cent increase, underscoring a gradual return of long-term foreign capital to the Nigerian economy.

CBN data showed that Direct Investment liabilities, which measure FDI inflows into the country, stood at $0.72bn in Q3 2025, compared with $0.09bn in the preceding quarter.

The apex bank noted that the increase reflected stronger equity participation and reinvestment of earnings by foreign investors.

“Direct Investment (DI) into the economy recorded a much higher inflow of $0.72bn in Q3 2025 as against $0.09bn recorded in Q2 2025,” the CBN stated.

The rebound in FDI coincided with an overall improvement in Nigeria’s external sector position during the quarter.

The country recorded an overall balance-of-payments surplus of $4.60bn, while external reserves rose to $42.77bn at end-September 2025, up from $37.81bn at the end of June 2025.

The financial account also swung to a net lending position of $0.32bn, reversing a net borrowing position of $6.90bn in Q2 2025, an indication that Nigeria accumulated more external assets during the period.

In contrast, portfolio investment inflows declined to $2.51bn in Q3 2025 from $5.28bn in Q2, suggesting a moderation in short-term capital flows.

Analysts view the divergence as a positive structural shift, as FDI is considered more stable and confidence-driven, involving long-term equity commitments rather than speculative investments.

The CBN attributed movements in the financial account to higher direct investment liabilities, improved participation in domestically issued financial instruments earlier in the year, and increased accumulation of reserve assets.

Despite the improved FDI numbers, the BoP report also highlighted continued 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 $2.95bn in Q3 2025, indicating that foreign-owned earnings outflows remain a drag on the external balance.

Nigeria, however, still recorded a current account surplus of $3.42bn during the quarter, supported largely by stronger export earnings and steady diaspora remittances.

Crude oil export receipts rose to $8.45bn, while refined petroleum product exports increased to $2.29bn, as refined-fuel imports continued to decline.

The combination of improved export performance, higher reserves, and stronger FX liquidity helped underpin the recovery in FDI inflows, factors widely regarded as critical in shaping foreign investors’ appetite for long-term exposure to the Nigerian economy.

Although FDI inflows remain modest relative to Nigeria’s long-term investment potential and historical peaks, the sharp rise in Q3 2025 marks a significant departure from the weak inflows recorded over multiple quarters, offering cautious optimism for a more durable recovery in foreign capital inflows.