NIGERIA’S net foreign liability position rose to $90.2 billion in 2025, an increase of $7.5 billion from $82.7 billion in 2024, the Central Bank of Nigeria has reported.
This means foreign investors now own more Nigerian assets than Nigerians own in other countries. Total foreign claims on Nigeria stood at $215.8 billion, while Nigerian investments and assets abroad totalled US$125.6 billion.
The rise was driven mainly by higher foreign portfolio and direct investment. Portfolio investment liabilities grew by $10.1 billion. Most of this money went into Nigerian debt securities, especially Open Market Operations (OMO) bills. High interest rates in Nigeria created attractive ‘carry trade’ opportunities that drew in foreign funds.
Direct investment liabilities also increased by US$6.7 billion. This shows foreign companies raised their stakes in Nigerian subsidiaries – a positive sign of investor confidence.
On the other side, Nigeria’s external reserves rose by $5.6 billion. Nigerian residents also slightly increased their own investments abroad. These gains helped limit the overall rise in the net liability figure.
The inflow of foreign money has improved Nigeria’s external liquidity and helped keep the exchange rate more stable. However, the heavy concentration of funds in short-term, high-yield debt securities has raised concerns. Such portfolio flows can leave quickly if global interest rates change or investor sentiment turns negative. Dr. Yemisi Ayinde, a researcher at Covenant University, said the situation shows the difficult balance between attracting foreign capital and protecting the economy. While the inflows have strengthened liquidity and confidence, the dominance of portfolio money over long-term investment increases risks of sudden outflows and refinancing pressure. She called for reforms that boost exports, expand value-added production, attract more foreign direct investment, and strengthen domestic savings.
Femi Awoyemi, founder of Proshare, noted that the rise in foreign investment has supported liquidity and exchange-rate stability. However, the focus on high-yield debt securities leaves the economy more exposed to shifts in global rates and investor mood. Sustaining progress, he said, will require a larger share of long-term direct investment, stronger export earnings, and continued reserve accumulation.
Looking ahead, firm international crude oil prices are expected to support Nigeria’s external position through higher export earnings, stronger foreign exchange inflows, and further reserve building.