Will Nigeria consolidate investment announcements in 2025?

Nigeria has secured an impressive $50.8 billion in investment commitments through a series of international engagements, sparking hopes and questions about the country's ability to consolidate and further enhance these investments in the year 2025. The journey towards economic recovery and growth post-pandemic has been a challenging yet promising one for Nigeria, with various dynamics at play shaping the investment landscape. Victor Aluyi, the Co-Managing Partner at Aztran Global Investments, shared insights on CNBC Africa about the current investment landscape and the outlook for the future. Looking back at the investment trends pre-COVID, there was a noticeable decline in FDIs across the African continent in 2023, attributed to high global interest rates. However, 2024 saw a positive uptick in FDIs, with North Africa, particularly Egypt, leading the way as a top FDI destination on the continent. Egypt's reforms, strategic location, and economic policies have positioned it as a magnet for foreign investments. In Nigeria, the story is one of cautious optimism. The country has made significant policy decisions to attract investments, and these efforts are expected to yield results in the coming years. Despite global economic and geopolitical uncertainties that influence FDI inflows, Nigeria's commitment of $50 billion is a testament to the potential awaiting the nation. For the Nigerian Stock Exchange, tracking the investment outcomes and aligning them with tangible results will be crucial for sustainable growth. Victor Aluyi emphasized the importance of differentiating between FDIs and FPIs, noting that while FPIs seek quick gains, FDIs are more stable and long-term commitments. He projected a continued growth in FDIs driven by ongoing reforms in Nigeria, provided the government maintains the policy course. In contrast, FPI flows might see a moderation due to shifts in interest rates and market stability. The FX space and cost of remittances are critical components in Nigeria's economic landscape. Aluyi highlighted the significance of oil production in boosting FX earnings, especially amidst declining crude oil prices globally. The remittance sector could play a vital role in supporting FX revenues, with improvements expected in 2025. Despite challenges in the global market, Nigeria's resilience and strategic positioning could pave the way for a robust investment environment in the years to come. The administration's commitment to reforms, coupled with favorable economic conditions, bode well for the country's FDI growth. As stakeholders navigate the uncertainties, the focus on strengthening the economy, attracting investments, and fostering sustainability will be key drivers in shaping Nigeria's investment landscape in 2025 and beyond.