International Direct Funding (FDI) into Nigeria rose sharply to $720 million in Q3 2025, up from $90 million recorded in Q2 2025, an increase of 700% quarter-on-quarter.
That is based on the Central Bank of Nigeria’s Stability of Funds (BoP) Highlights for the interval.
Yr-on-year, FDI inflows have been additionally increased than the $570 million posted in Q3 2024, representing a 26.3% improve.
What the report says
The report exhibits that Direct Funding liabilities, which seize FDI inflows into the Nigerian financial system, recorded $0.72 billion in Q3 2025, making it the strongest FDI quarter to this point in 2025.
It learn, “Direct Funding (DI) into the financial system recorded a a lot increased influx of US$0.72 billion in Q3 2025 as in opposition to US$0.09 billion recorded in Q2 2025.”
The leap contrasts with persistent issues lately over weak investor confidence, elevated macro-economic threat, and constrained capital inflows.
The CBN knowledge exhibits that the FDI rebound in Q3 2025 coincided with improved external-sector indicators. Nigeria posted an total balance-of-payments surplus of $4.60 billion, whereas exterior reserves rose to $42.77 billion as on the finish of September 2025 from $37.81 billion at end-June 2025.
The monetary account additionally switched to a web lending place of $0.32 billion from web borrowing of $6.90 billion in Q2, an indication that the nation amassed extra exterior belongings in the course of the quarter.
On the identical time, portfolio funding inflows fell to $2.51 billion in Q3 in contrast with $5.28 billion in Q2 2025. This implies that whereas short-term capital inflows moderated, long-term equity-type investments — thought of extra steady — strengthened in the course of the quarter.
What the numbers say about investor sentiment
The CBN attributed broader actions within the monetary account to elevated inflows of direct funding liabilities, improved participation in domestically issued devices earlier within the 12 months, and better reserve asset accumulation.
FDI flows are sometimes seen as a stronger gauge of investor confidence as a result of they contain long-term fairness participation and reinvestment of earnings reasonably than speculative flows.
Though nonetheless modest in comparison with Nigeria’s funding potential and historic ranges, the return to a considerably increased FDI influx marks a shift from the subdued flows seen over a number of quarters.
Nevertheless, the information additionally exhibits continued repatriation of reinvested earnings by home banks on their overseas belongings, which contributed to a wider major earnings debit of $2.95 billion in Q3 2025.
This highlights that foreign-owned earnings and revenue outflows stay a drag on the present account regardless of the advance in headline FDI numbers.
The development in FDI inflows got here throughout 1 / 4 the place Nigeria additionally reported a present account surplus of $3.42 billion, pushed largely by crude oil and refined-product export earnings in addition to regular diaspora remittances. Crude oil export receipts elevated to $8.45 billion, whereas refined-product exports rose to $2.29 billion. The CBN additionally famous that refined-fuel imports continued to say no.
These developments supported FX liquidity and reserve accumulation, that are vital determinants of investor urge for food for long-term capital publicity.
What it’s best to know
- Nigeria has confronted structurally weak FDI inflows lately attributable to forex instability, coverage uncertainty, infrastructure constraints, and safety issues.
- Nairametrics earlier reported that International direct funding (FDI) inflows into Nigeria declined by 19% to $250 million in Q1 2025, in comparison with $310 million within the earlier quarter.
- The sharp rise in Q3 inflows alerts renewed threat urge for food amongst overseas buyers — doubtless supported by FX-market reforms, ongoing fiscal and financial coverage changes, and better oil-sector earnings.
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