The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns that Nigeria’s sharp rebound in capital importation has yet to translate into meaningful gains in productivity and real-sector growth.

According to recent data released by the National Bureau of Statistics, capital inflows into the country surged by 380 percent year-on-year to $6.01 billion in the third quarter of 2025, up from $1.25 billion recorded in the corresponding period of 2024.

The figures sparked optimism within the administration of Bola Ahmed Tinubu, reflecting renewed investor confidence in the economy.

However, reacting to the capital importation reports for the second and third quarters of 2025, CPPE, in a statement signed by its Chief Executive Director, Muda Yusuf, described the data as encouraging but cautioned that significant structural risks remain.

The think tank noted that a deeper breakdown of the inflows shows that most of the funds were channelled into the banking and financial services sector, with limited investment directed toward manufacturing, infrastructure, agro-processing, logistics, energy, and export-oriented industries.

CPPE stressed that while financial inflows have improved, they have not yet resulted in a substantial expansion of Nigeria’s productive capacity. It warned that without stronger capital allocation to the real sector, the economy may experience only marginal improvements in employment generation, productivity, and inclusive growth.

“Financial deepening without real-sector expansion risks creating a liquidity-driven recovery that does not fundamentally alter Nigeria’s productive base,” the statement said.

The organization urged policymakers to shift focus from a liquidity-driven rebound to an investment-led transformation strategy, emphasizing that converting short-term capital inflows into long-term productive investments is critical for sustainable growth, job creation, export diversification, and macroeconomic stability.