LAGOS, Nigeria — Nigeria’s capital importation rose to $23 billion in 2025 from more than $12 billion in 2024, while the country’s foreign exchange reserves surpassed $50 billion, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, has said.
Oduwole attributed the developments to economic reforms introduced by President Bola Tinubu’s administration but warned that Nigeria must channel more investment into productive sectors to generate jobs, expand exports and sustain economic growth.
The minister spoke on Monday while delivering the keynote address at the Third Annual Lagos Multi-Door Courthouse (LMDC) and Alternative Dispute Resolution (ADR) Stakeholders’ Summit in Lagos.
The summit, held at the MUSON Centre, had the theme, “Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate.”
According to the News Agency of Nigeria (NAN), Oduwole said capital importation increased by 83 per cent year-on-year, rising from $5.5 billion in the first quarter of 2025 to more than $10 billion in the corresponding period of 2026.
She added that foreign exchange reserves had climbed from more than $40 billion to above $50 billion, strengthening Nigeria’s capacity to withstand external economic shocks.
The minister attributed the developments to reforms introduced by the Tinubu administration, including foreign exchange market unification, petrol subsidy removal, tax reforms and banking recapitalisation.
She also said Nigeria’s economy grew by more than four per cent in 2025 and maintained growth above that level in the first half of 2026.
Inflation, according to her, declined from 33.2 per cent in 2024 to 14.63 per cent in September 2026.
Oduwole further disclosed that Nigeria’s non-oil exports had exceeded $6 billion, with products including cocoa derivatives, fertiliser, cashew, dairy, pulp and paper, and cassava starch contributing to the performance.
Minister warns against short-term capital flows
Despite the reported increase in capital importation, Oduwole stressed that the volume of investment entering the country was not enough on its own to guarantee sustainable economic development.
She said the government wanted to attract more long-term investment into manufacturing, infrastructure, agricultural processing and other productive sectors instead of relying heavily on short-term portfolio investments.
“Importantly, the quality of capital matters as much as the volume. Nigeria is working on moving capital into factories, infrastructure, processing capacity, and enterprises that can grow, employ, and export,” she said.
The distinction is significant because capital importation can include portfolio investments in financial instruments as well as foreign direct investment in businesses and productive assets. While both can support economic activity, longer-term investments in productive enterprises can create jobs, expand domestic production and strengthen export capacity.
Oduwole said a predictable business environment was essential to attracting investors willing to commit capital over extended periods.
She identified institutional reliability, regulatory clarity, enforceable contracts and timely resolution of commercial disputes as major considerations for investors assessing Nigeria.
According to her, mediation and arbitration can reduce the costs and delays associated with conventional litigation, preserve commercial relationships and improve investor confidence.
“A predictable business environment attracts investment; it’s really that simple,” she said.
“Credible institutions sustain it and effective dispute resolution helps to protect it.”
FG moves to strengthen investment protection
Oduwole disclosed that her ministry was advancing reforms to Nigeria’s investment regulatory framework, including provisions for an investment ombudsman.
The proposed mechanism is intended to provide investors with a channel for resolving grievances before they escalate into formal disputes.
Such a framework could help address complaints involving regulatory decisions, administrative delays and other challenges affecting businesses, provided the mechanism is accessible and effective.
She commended the Lagos Multi-Door Courthouse for promoting alternative dispute resolution and expanding access to mechanisms for settling commercial disagreements.
Fagbemi backs arbitration, mediation reforms
Also speaking at the summit, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, described arbitration and mediation as essential tools for building trust, reducing investment risks and supporting sustainable economic growth.
Fagbemi highlighted the Federal Government’s ongoing efforts to strengthen Nigeria’s dispute-resolution framework, including the inauguration of a National Committee on the Review of the Arbitration and Mediation Act 2023.
He also disclosed that the government was developing a national policy on arbitration aimed at positioning Nigeria as a leading dispute-resolution hub in Africa.
The minister commended the LMDC, which he described as Africa’s first court-connected alternative dispute-resolution centre, for its contribution to modern justice delivery.
Quoting former United Nations Secretary-General Kofi Annan, Fagbemi said: “Litigation may win cases, but mediation wins peace.”
He reaffirmed the Federal Government’s commitment to supporting similar initiatives across the country and urged stakeholders to strengthen collaboration to improve justice delivery and Nigeria’s economic competitiveness.
The summit brought together stakeholders in investment, commercial law and dispute resolution to examine how stronger institutions and more efficient mechanisms for resolving business disputes could help Nigeria attract and retain investment.
