Nigeria’s Capital Inflow Hits $6bn – CPPE

The Centre for the Promotion of Private Enterprise (CPPE) is raising a red flag over the quality of Nigeria’s investment landscape, even as new data shows capital importation skyrocketed by 380 percent year-on-year.

While the numbers jumped to $6.01 billion in the third quarter of 2025 from $1.25 billion the year prior, experts warn that the celebration might be premature.

This surge in foreign funding initially sparked a wave of optimism within President Bola Ahmed Tinubu’s administration following the release of the National Bureau of Statistics report just last week.

However, in a detailed review of the Q2 and Q3 2025 reports, CPPE’s Chief Executive Director, Muda Yusuf, pointed out that while the headline figures are encouraging, the underlying structural risks for the Nigerian economy remain deeply concerning.

The CPPE clarified that a closer look at the data reveals a lopsided trend: the vast majority of this capital flowed directly into the banking and financial sectors, leaving vital areas like manufacturing and infrastructure with only breadcrumbs.

The economic think tank argues that this influx of cash isn’t yet building the factories or power plants Nigeria desperately needs. Without a shift toward agro-processing, energy, and export-driven industry, the country will continue to struggle with high unemployment and stagnant productivity despite the “paper” growth.

“Financial deepening without real-sector expansion risks creating a liquidity-driven recovery that does not fundamentally alter Nigeria’s productive base.

“The central task before policymakers is clear: move from a liquidity-driven recovery to investment-led transformation.

“Only by converting short-term capital inflows into long-term productive investment can Nigeria achieve sustainable growth, employment expansion, export diversification, and macroeconomic resilience,” CPPE urged the Nigerian government.