Nigeria recorded its lowest foreign exchange volatility and highest foreign direct investment inflow in five years in 2025, according to data compiled from Yahoo Finance, the National Bureau of Statistics and TheCable Index.

The data showed that foreign direct investment inflow rose to $923.01 million in 2025, surpassing figures recorded between 2021 and 2024. At the same time, annualised forex volatility dropped to 6.65 percent, the lowest within the five-year period reviewed.

Forex volatility in the report refers to fluctuations in the dollar-to-naira exchange rate.

In 2024, Nigeria recorded an FDI inflow of $674.71 million alongside forex volatility of 50.40 percent, while 2023 posted the highest volatility level at 46.32 percent with an FDI inflow of $377.38 million.

The figures also showed that in 2022, foreign direct investment stood at $468.08 million with volatility at 7.52 percent, while 2021 recorded $698.78 million in FDI and 25.32 percent volatility.

The latest data suggests improved exchange rate stability in 2025 compared to the sharp fluctuations witnessed in previous years, alongside increased foreign investor inflows into the Nigerian economy.