FG says foreign investment up 83%, reserves top $50bn
Nigeria's Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, announced a significant increase in foreign investment, with capital importation rising 83% year-on-year to over $10bn in Q1 2026, and foreign exchange reserves exceeding $50bn.
Intelligence analysis by Gemini 2.5 Flash
Dr. Jumoke Oduwole attributed Nigeria's economic improvements, including a surge in capital importation and foreign exchange reserves, to reforms by President Bola Tinubu's administration. These reforms encompass foreign exchange unification, fuel subsidy removal, tax adjustments, and banking recapitalisation, aiming to translate positive indicators into increased production and job c…
Imagine Nigeria's economy is like a big lemonade stand. For a while, not many people were buying or investing in it. But now, the government has made some changes, like making it easier for people from other countries to put their money into the stand. Because of these changes, lots more money is coming in, like people buying more lemonade, and the country's savings account is growing bigger. This makes the lemonade stand stronger and helps it make more lemonade and hire more helpers.
Analysis
$23bn in 2025
Nigeria's economic landscape has seen notable improvements, with capital importation reaching $23bn in 2025, a substantial increase from over $12bn in 2024. This upward trend continued into the first quarter of 2026, where capital importation surged by 83% year-on-year, climbing from $5.5bn in Q1 2025 to over $10bn.
Accompanying this rise in investment, the nation's foreign exchange reserves have surpassed the $50bn mark. The economy also demonstrated robust growth, expanding by over four percent in 2025 and maintaining this momentum through the first half of 2026. Furthermore, inflation saw a significant decline, dropping from 33.2% in 2024 to 14.63% by September 2026, indicating a more stable macroeconomic environment.
President Bola Tinubu
The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, credited these positive economic shifts to the comprehensive reforms initiated by the administration of President Bola Tinubu. Key policy changes include the unification of foreign exchange rates, the removal of fuel subsidies, significant tax reforms, and the recapitalisation of the banking sector. These measures were designed to enhance investor confidence and create a more predictable business environment.
Beyond traditional sectors, Nigeria's non-oil exports have also achieved a record value exceeding $6bn, encompassing a diverse range of products such as cocoa derivatives, cashew, and cassava starch. The creative and digital sectors are emerging as significant contributors, accounting for approximately 18% of the country's Gross Domestic Product and expanding exports across Africa and beyond. Foreign direct investment opportunities are increasingly diversifying into manufacturing, agribusiness, financial technology, renewable energy, and infrastructure, signaling a strategic move away from oil dependency.
Multi-Door Courthouses
A critical focus for sustaining and attracting long-term investment, as highlighted by Dr. Oduwole, is the efficiency and reliability of Nigeria's commercial dispute-resolution system. Investors prioritize clear regulations, enforceable contracts, and fair, efficient dispute resolution processes when committing capital for extended periods. Lengthy and uncertain legal proceedings can significantly deter potential investors, particularly for complex commercial arrangements.
Alternative Dispute Resolution (ADR) mechanisms, such as mediation and arbitration, are being promoted as vital tools to reduce the time and cost associated with commercial disputes, thereby preserving business relationships and bolstering investor confidence. The Federal Ministry of Industry, Trade and Investment is actively advancing reforms to the investment regulatory framework, including the establishment of an investment ombudsman to address grievances before they escalate. This initiative aligns with the dispute-prevention provisions outlined in the African Continental Free Trade Area Protocol on Investment, further integrating Nigeria into regional economic frameworks. The Lagos Multi-Door Courthouse was specifically commended for its role in providing accessible ADR channels, demonstrating a commitment to improving the investment climate.
Key points
- Nigeria's capital importation rose to $23bn in 2025, increasing by 83% year-on-year to over $10bn in Q1 2026.
- Foreign exchange reserves have exceeded $50bn, and the economy grew over four percent in 2025 and H1 2026.
- Inflation declined from 33.2% in 2024 to 14.63% in September 2026.
- Economic improvements are attributed to reforms like foreign exchange unification, fuel subsidy removal, and tax reforms.
- The government is prioritizing attracting long-term investments and improving commercial dispute resolution through Alternative Dispute Resolution (ADR) mechanisms.
If the current economic reforms continue to yield positive results, Nigeria could see sustained economic growth, increased job creation, and a more diversified economy less reliant on oil. The focus on improving the dispute resolution system could attract more long-term, productive investments, fostering a stable and attractive business environment.
Despite the positive indicators, a significant proportion of recent capital inflows are short-term portfolio investments, which can be volatile and prone to quick withdrawal. The challenge remains to translate these economic improvements into tangible benefits for ordinary Nigerians and to attract more long-term investments into productive enterprises and infrastructure.
