NIGERIA’S FOREIGN DIRECT INVESTMENTS TO INCREASE IN 2025 – REPORT

NIGERIA’S FOREIGN DIRECT INVESTMENTS TO INCREASE IN 2025 – REPORT

Nigeria’s foreign direct investments are expected to increase in the coming year, 2025, provided current economic reforms are sustained, analysts at Cordros Securities Limited said.

The company disclosed this in its report titled, ‘Nigeria in 2025, Reform to Recovery, Navigating the Rebound.’.

A firm warned that existing institutional weaknesses and existing geopolitical tensions are likely to undermine reform efforts and limit potential gains.

“FPI inflows are set to increase, supported by attractive naira yields, global monetary policy easing, and improved FX market efficiency after the adoption of the Electronic Foreign Exchange Matching System, EFEMS.

“However, existing geopolitical tensions remain a key risk to substantial inflows.
While we anticipate an improvement in FX liquidity, the naira is poised to depreciate further as the overall supply will remain insufficient to keep it stable at current levels throughout the year.”

President Bola Ahmed Tinubu’s fuel subsidy removal and Naira floating had a lag impact on the country’s economy in 2024.

This is the case; fuel prices rose to between N1,060 and N1,150 per litre in the year under review from less than N234. Also, the Naira increased to N1,532 per dollar from N470.

The development impacted the country’s inflation rate, which stood at 33.88 percent in October 2024.