Nigeria’s foreign direct investments are projected to grow in 2025 if current economic reforms are maintained, according to analysts at Cordros Securities Limited.
This was highlighted in their report titled ‘Nigeria in 2025: Reform to Recovery, Navigating the Rebound.’
The firm, however, cautioned that institutional weaknesses and geopolitical tensions could hinder reform efforts and limit potential benefits.
“FPI inflows are expected to rise, driven by attractive naira yields, global monetary policy easing, and improved FX market efficiency following the implementation of the Electronic Foreign Exchange Matching System (EFEMS).
“Nonetheless, geopolitical tensions pose a significant risk to substantial inflows. While FX liquidity is anticipated to improve, the naira is likely to depreciate further as supply will remain insufficient to stabilise it at current levels throughout the year.”
President Bola Ahmed Tinubu’s policies, such as fuel subsidy removal and naira flotation, had delayed effects on the economy in 2024. Fuel prices surged to between N1,060 and N1,150 per litre from less than N234, while the naira depreciated to N1,532 per dollar from N470.
These changes contributed to the country’s inflation rate, which reached 33.88% in October 2024.
