Analysts at Cordros Securities project an increase in Nigeria’s foreign direct investments (FDI) in 2025, driven by reforms.
The analysts from Cordros Securities highlighted that sustaining current reforms is key to boosting FDI and market confidence.
Their report, titled “Nigeria in 2025, Reform to Recovery,” discusses prospects for economic recovery with sustained policy efforts.
The analysts anticipate rising foreign portfolio investments (FPI), fueled by improved FX market efficiency and attractive naira yields.
They also noted that global monetary policy easing and the adoption of EFEMS would support FPI inflows into Nigeria.
However, geopolitical tensions remain a significant risk that could undermine reform efforts and limit potential foreign investments.
Despite these concerns, analysts expect an overall improvement in FX liquidity, which will contribute to economic stability in 2025.
Still, they warned that the naira might depreciate further due to insufficient foreign exchange supply in the market.
Nigeria’s inflation rate reached 33.88 percent in October 2024, influenced by fuel subsidy removal and the naira’s depreciation.
Fuel prices surged from N234 to N1,060-N1,150 per litre, while the naira weakened significantly against the dollar in 2024.
