Nigeria’s FPIs to reach record high of $20bn despite Trump’s threat

Nigeria’s Foreign Portfolio Investment (FPI) is projected to reach a record $20 billion by the end of 2025, despite President Donald Trump’s declaring Africa’s most populous nation as ‘Country of Particular Concern’, according to CFG Advisory.

The Lagos-based consultancy said while money market instruments and bonds have remained attractive over the last 10 years for FPIs, investment in equities have been on a significant decline.

“Despite the Trump rhetoric, The CFG Advisory can project based on Q2 and Q3 2025 data, that Nigeria will exceed US$20 billion of FPI in 2025. A record high from the US$16 billion recorded in 2019,” the firm said in a note to BusinessDay.

Despite the potential rise in FPIs, the company said Nigeria must stay the course on the reforms process and urgently needs to reset the narrative on the security situation in Nigeria and address the crisis head-on, to ensure the reform gains are sustained.

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Nigeria has embarked on bold reforms, including eliminating fuel subsidies, unification of its exchange rates and harmonisation of its fractured tax laws to improve its fiscal position.

Those reforms have restored macroeconomic stability and have seen an influx of portfolio investors into the country. It’s equally led to improved credit ratings with the latest being the revision of Nigeria’s outlook to Positive from Stable while affirming its ‘B-/B’ rating by S&P Global Ratings.

While the naira has become more stable and inflation has slowed for the seventh consecutive month to 16 percent, the gains of the reforms are yet to improve the livelihoods of the citizens.

“The government also urgently needs to restore fiscal discipline and deploy policies that will stimulate sustainable economic growth and development that will impact the lives of Nigerians.”