Nigeria’s Foreign Direct Investments Projected to Grow in 2025 if Economic Reforms Persist
Nigeria’s foreign direct investments (FDIs) are anticipated to witness significant growth in 2025, provided ongoing economic reforms remain consistent, analysts at Cordros Securities Limited told PulseNets.
The firm made this observation in its detailed report titled ‘Nigeria in 2025: Reform to Recovery, Navigating the Rebound.’
Cordros Securities, however, cautioned that institutional frailties and persistent geopolitical tensions could undermine the reform agenda and hinder 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,” the report noted.
“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.”
PulseNets learnt that President Bola Ahmed Tinubu’s policies, including the removal of the fuel subsidy and the floating of the naira, had a pronounced impact on Nigeria’s economy in 2024.
Fuel prices reportedly surged to between N1,060 and N1,150 per litre in 2024, compared to less than N234 previously. Additionally, the naira depreciated from N470 per dollar to a staggering N1,532.
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This economic shift had a ripple effect on inflation, which PulseNets reported hit 33.88 percent as of October 2024.
Despite these challenges, analysts are optimistic about Nigeria’s economic trajectory in 2025 if reform momentum is maintained.
