CPPE warns Nigeria's capital flow structure exposes economy to risks despite growth

CPPE warns Nigeria's capital flow structure exposes economy to risks despite growth. CPPE warns headline growth hides vulnerabilities in capital flow structure. Capital inflows surged 380% YoY to $6.01B in Q3 2025 but 80% portfolio investment creates volatility. FDI only 4.35% of inflows shows structural weakness. Banking sector dominates with $3.14B (52.25%) while manufacturing gets just $261M. CPPE cautions without structural reforms rebound may prove fragile. Portfolio flows react to global rates but lack long-term production impact. Sustainable growth needs FDI in manufacturing, infrastructure, and exports.

SOURCE: https://nairametrics.com/2026/02/22/cppe-current-capital-flow-structure-exposes-nigeria-to-risks/