Nigeria attracted $20.9 billion in capital inflows between January and October 2025, marking one of the country’s strongest investment rebounds in years.
The surge reflects renewed investor confidence following key monetary and foreign exchange reforms introduced to stabilise the economy.
FX Reforms Spark Return of Foreign Investors
Central to the rise in inflows is the overhaul of Nigeria’s foreign exchange market.
The government cleared outstanding FX backlogs, improved market transparency, enforced stricter participation rules, and moved towards a unified exchange rate system.
These measures have reversed years of weak investment sentiment, driving significantly higher inflows compared to the same period last year.
Reserves Strengthen as Inflows Improve External Position
The increase in capital inflows has boosted Nigeria’s external reserves, helping the economy better absorb global financial pressures.
Higher remittances, rising non-oil export earnings, and enhanced currency stability have contributed to a stronger balance of payments.
This has also improved liquidity in the financial sector and reduced pressure on the naira.
Economy Positioned for Sustained Growth
Authorities say more reforms are planned to ensure discipline in the FX market, curb speculation, and attract longer-term investors. Analysts note that maintaining the current policy trajectory will be crucial to converting short-term portfolio flows into more stable investments, including FDI in infrastructure, manufacturing, and housing.
With confidence steadily returning and key economic indicators improving, Nigeria aims to build on the momentum to support broader economic recovery through 2026.
