Trade Minister says inflation drops to 14.63%, urges shift from short-term portfolio inflows to long-term investments in productive sectors……
Nigeria’s capital importation climbed to $23bn in 2025 from more than $12bn in the previous year, while the country’s foreign exchange reserves crossed the $50bn mark, the Minister of Industry, Trade and Investment, Jumoke Oduwole, has disclosed.
Oduwole said the figures reflected improvements in the country’s economic outlook, adding that capital importation recorded further growth in the first quarter of 2026.
The minister spoke on Monday while delivering the keynote address at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit in Lagos.
Addressing participants on the theme, “Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate,” she said capital importation rose by 83 per cent year-on-year, from $5.5bn in the first quarter of 2025 to more than $10bn in the corresponding period of 2026.
She also disclosed that Nigeria’s economy expanded by more than four per cent in 2025 and sustained growth above that level in the first half of 2026.
According to her, inflation declined from 33.2 per cent in 2024 to 14.63 per cent in September 2026.
Oduwole attributed the improvements to economic reforms introduced by President Bola Tinubu’s administration, including the unification of foreign exchange rates, removal of the petrol subsidy, tax reforms and banking recapitalisation.
She added that the country’s non-oil exports had reached a record value of more than $6bn, driven by products such as cocoa derivatives, fertiliser, cashew, dairy, pulp and paper, and cassava starch.
The minister also highlighted the growing contribution of Nigeria’s creative and digital industries, which she said accounted for about 18 per cent of gross domestic product and employed millions of people while expanding into export markets across Africa and beyond.
She identified manufacturing, agribusiness, financial technology, renewable energy and infrastructure as sectors attracting increasing interest from foreign investors, describing the trend as part of a gradual shift towards a more diversified economy.
However, Oduwole said the government was focused on ensuring that improved economic indicators translated into greater domestic production, stronger businesses, increased exports and employment opportunities.
She cautioned that the volume of capital entering the country was not the only consideration, noting that a substantial proportion of recent inflows consisted of short-term portfolio investments in money market instruments and bonds.
According to her, Nigeria needs more long-term capital directed towards factories, infrastructure and productive enterprises capable of expanding economic activity.
“The quality of capital matters as much as the volume,” she said, emphasising the need to attract investments that would increase production, create jobs and strengthen the country’s export capacity.
FG targets faster resolution of commercial disputes
Beyond macroeconomic indicators, Oduwole identified the effectiveness of Nigeria’s commercial dispute-resolution system as a major factor in determining whether investors commit funds to long-term projects.
She said investors assessed the strength of institutions, clarity of regulations, enforceability of contracts and fairness of dispute-resolution processes before making investment decisions.
Lengthy and unpredictable legal proceedings, she warned, could discourage both domestic and foreign investors, particularly those involved in complex commercial transactions and infrastructure projects.
The minister said alternative dispute resolution mechanisms, including mediation and arbitration, could reduce the cost and duration of commercial disagreements, preserve business relationships and improve confidence in the investment climate.
She disclosed that the Federal Ministry of Industry, Trade and Investment was working to strengthen Nigeria’s investment regulatory framework, including provisions for an investment ombudsman to address investors’ complaints before they escalate into formal disputes.
According to her, the proposed mechanism aligns with the dispute-prevention provisions of the African Continental Free Trade Area Protocol on Investment.
Oduwole also commended the Lagos State Judiciary and the Lagos Multi-Door Courthouse for providing channels through which individuals and businesses can resolve disputes through mediation, arbitration and other non-litigation processes.
Recalling her time as Special Adviser to the President on Ease of Doing Business, she said she worked with state judiciaries and other stakeholders under the Presidential Enabling Business Environment Council to establish small claims courts.
The courts, she explained, were designed to provide simpler, faster and more affordable resolution of minor commercial disputes, particularly those involving micro, small and medium-sized enterprises.
She said 35 jurisdictions across the country had established small claims courts by the time she concluded her tenure.
The minister called for closer cooperation among the executive, judiciary, legal practitioners and private sector to expand the use of alternative dispute resolution, strengthen mediation and investment arbitration expertise, and prevent avoidable commercial disputes.
She urged participants at the summit to develop practical proposals for speeding up dispute resolution, improving coordination among institutions and strengthening investor confidence.
“A predictable business environment attracts investment; it’s really that simple. Credible institutions sustain it, and effective dispute resolution helps to protect it,” she said.
Also speaking at the summit, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, said arbitration and mediation were essential to reducing business risks, attracting investments and supporting sustainable economic growth.
In his goodwill message, Fagbemi highlighted ongoing Federal Government efforts to strengthen the country’s alternative dispute resolution framework and improve its attractiveness to investors.
He listed a review of the arbitration and alternative dispute resolution framework, the inauguration of the National Committee on the Review of the Arbitration and Mediation Act 2023, and the development of a National Policy on Arbitration among the initiatives.
According to him, the measures are intended to strengthen Nigeria’s position as a leading arbitration destination in Africa.
Fagbemi described the Lagos State Multi-Door Courthouse as Africa’s first court-connected alternative dispute resolution centre, saying its establishment demonstrated the growing role of ADR in modern justice delivery.
He reaffirmed the Federal Government’s commitment to supporting similar initiatives across the country, adding that integrating alternative dispute resolution into the justice system would improve investor confidence and enhance Nigeria’s economic competitiveness.
The justice minister said businesses needed an environment where commercial disagreements could be resolved efficiently, without the delays and expenses often associated with prolonged litigation.
He cited former United Nations Secretary-General Kofi Annan’s remarks following the International Court of Justice ruling on the Bakassi Peninsula to underscore the importance of peaceful dispute resolution.
“Litigation may win cases, but mediation wins peace,” Fagbemi said.
He urged stakeholders to contribute practical ideas towards improving dispute-resolution mechanisms, stimulating economic growth and positioning Nigeria as a regional leader in efficient and innovative dispute settlement.
