Nigeria economy shows signs of stability amid investment growth

Nigeria is experiencing a complex economic landscape marked by improving macroeconomic indicators alongside persistent cost-of-living challenges. Deutsche Bank has added the naira to its frontier foreign exchange monitor, identifying the currency as undervalued and attractive to investors due to high real interest rates. While the naira has shown signs of appreciation, Deutsche Bank warned that increased government borrowing and fiscal pressures could pose risks to these gains.

On the investment front, Minister of Industry, Trade and Investment Jumoke Oduwole reported that capital importation reached $23 billion in 2025, with foreign exchange reserves exceeding $50 billion. The government is also targeting a $1 trillion economy by 2030 through a proposed bill requiring 30 percent value addition to raw materials before export.

However, debates persist regarding the cost of maintaining foreign reserves. Former Fidelity Bank chairman Mustafa Chike-Obi argued that the cost of funding reserves could exceed $10 billion annually due to interest rate differentials. This claim was contested by Dele Oye, who stated that such calculations fail to account for the specific risks and financing arrangements involved in reserve management.