Nigeria's investment landscape witnessed a significant and positive shift in 2025, with capital inflows rebounding to mark what officials are calling a definitive turning point. The Federal Ministry of Industry, Trade and Investment (FMITI) has declared that the year's performance signals an inflection point towards transformational growth for the nation's economy.
A Dramatic Rebound in Capital Flows
The data reveals a stark recovery from the subdued levels of previous years. Capital importation surged from $3.9 billion in 2023 to $12.3 billion in 2024. The momentum accelerated dramatically in 2025, with combined portfolio and foreign direct investment inflows reaching nearly $14 billion within just the first three quarters, already exceeding the total for the entire previous year.
While acknowledging that these figures are still below Nigeria's long-term potential, the ministry emphasized that the trend represents a crucial shift away from economic contraction. The rebound is attributed to reforms implemented under the leadership of the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, which have translated into clearer policy direction and stronger execution.
Sector Focus and Broadened Investor Base
The investment flows were strategically concentrated in sectors aligned with the government's economic agenda. Key beneficiaries included:
- Food security and agro-processing (e.g., cocoa, palm oil)
- Energy and power distribution
- Industrial infrastructure and zones
- The digital economy, including payment services and tech platforms
A notable feature of the 2025 activity was the prominent role of domestic investors. Nigerian giants like Heirs Energies, Presco, UACN, and Transgrid Enerco acted as acquirers and consolidators. This broadened participation, supported by development finance institutions like Afreximbank and the International Finance Corporation (IFC), helped reduce dependence on single sources of capital.
International Push and Deal Conversion
Aggressive international engagement was a cornerstone of the strategy. Minister Oduwole undertook 50 investment-promotion trips and participated in 150 bilateral meetings with key partners including the UK, USA, UAE, Japan, Brazil, India, and Benin. These efforts focused on advancing trade partnerships and resolving bottlenecks.
The United Kingdom emerged as the leading source of capital, accounting for 65.65% of total inflows in Q1 2025, followed by the United States, South Africa, and the UAE. The ministry also implemented rigorous tracking for over $50 billion in signed commitments from presidential missions, with about $13 billion moving toward implementation by year-end.
On the domestic front, the inaugural Domestic Investors Summit in 2025 connected banks, corporates, pension funds, and sovereign institutions, resolving 50 identified bottlenecks and presenting over 40 businesses to investors.
The Path Forward for 2026
While economic pressures persisted for many citizens, the FMITI asserts that the investment environment itself has fundamentally changed. The focus for 2026 is set on deepening these gains by strengthening industrial value chains, improving policy coherence, and ensuring that investment growth translates into tangible benefits: job creation, enhanced competitiveness, and broader economic prosperity for Nigeria.
