Nigeria Records Sharp Rebound in Foreign Direct Investment for Q3 2025

Foreign Direct Investment (FDI) inflows into Nigeria experienced a dramatic resurgence in the third quarter of 2025, reaching $720 million. This figure, released by the Central Bank of Nigeria (CBN) in its Balance of Payments Highlights, represents a substantial 700% increase from the $90 million recorded in the preceding quarter (Q2 2025). Year-on-year, the inflows also grew by 26.3%, surpassing the $570 million posted in Q3 2024. This performance establishes Q3 2025 as the strongest quarter for FDI in the year to date.

Broader Economic Context and Investor Sentiment

The significant jump in FDI, a key gauge of long-term investor confidence, contrasts with recent periods characterized by weak capital inflows and elevated macroeconomic risks. The CBN data indicates this rebound coincided with improved external-sector health. Nigeria posted an overall balance-of-payments surplus of $4.60 billion, and external reserves climbed to $42.77 billion by the end of September 2025. Furthermore, the financial account shifted to a net lending position of $0.32 billion, signaling the accumulation of more external assets. This positive shift occurs even as the nation continues to navigate complex security and political landscapes, where events like troops nab bandit operations and political discussions for 2027: Obi slams certain policies, remain in focus.

Notably, the structure of capital inflows changed during the quarter. Portfolio investment, often more speculative, fell to $2.51 billion from $5.28 billion in Q2. This suggests a strengthening of more stable, long-term equity investments. The CBN attributed the financial account improvement to increased FDI liabilities, earlier participation in domestic instruments, and higher reserve accumulation. The economic momentum reflected in these figures provides a crucial backdrop for national events, from cultural festivities like Detty December gets underway to significant judicial and political developments, such as when Akpabio heads Supreme Court deliberations or international news like Trump appeals judge’s ruling resonates globally.

Nuances Within the Positive Headline Figures

Despite the encouraging headline FDI number, the data reveals ongoing challenges. The report noted continued repatriation of reinvested earnings by domestic banks on their foreign assets, contributing to a wider primary income debit of $2.95 billion. This highlights that earnings outflows remain a pressure point on the current account. The FDI improvement was supported by a current account surplus of $3.42 billion, driven largely by increased crude oil export receipts and steady diaspora remittances. While still modest relative to Nigeria’s historical potential, the Q3 2025 data marks a significant positive shift from the subdued FDI flows witnessed in recent quarters.