The Centre for the Promotion of Private Enterprise (CPPE) has said Nigeria’s $6.01 billion capital importation in the third quarter of 2025 signals a gradual restoration of investor confidence, following recent macroeconomic reforms.
In its reaction to the latest capital importation data, the centre described the rebound as encouraging but cautioned that structural vulnerabilities persist. It noted that while total inflows rose by 380 percent year-on-year and 17 percent quarter-on-quarter, the composition of the inflows raises concerns.
According to CPPE, more than 80 percent of the inflows in Q3 2025 were portfolio investments, while foreign direct investment (FDI) accounted for less than five percent. The centre explained that although portfolio investments provide short-term liquidity support and help stabilise financial markets, they are highly sensitive to global interest-rate movements and investor sentiment, making them prone to sudden reversals.
It attributed the resurgence in inflows to foreign-exchange market liberalisation, tighter monetary policy, and improved liquidity conditions in the domestic financial system. These measures, CPPE said, are beginning to positively influence investor behaviour.
However, the centre stressed that sustainable economic growth, employment generation, export expansion, and macroeconomic resilience depend largely on stable, long-term FDI tied to production, infrastructure, manufacturing, and technology transfer
