MARKET NEWS

Capital importation into Nigeria’s transport sector has surged the most in 2025, signalling rising investor confidence in the country’s mobility industry amid a gradual shift toward alternative energy options.

Foreign Direct Investment (FDI) rose by 286.7 percent from $19.7 million in 2024 to $75.4 million in 2025, according to data from the National Bureau of Statistics (NBS). On a quarter-on-quarter basis, it surged from $5.23 million in the third quarter of 2025 to $12 million in the fourth quarter.

As Nigeria’s population expands and traffic congestion intensifies, demand for better transport infrastructure is increasing, pushing the government to invest in highway expansions, railway modernisation, and smart city mobility for better connectivity in the country.

The sector saw increased investment in infrastructure, particularly in road expansion and rail modernisation aimed at improving connectivity.

Major investment in Nigeria’s transportation sector in 2025 includes the Lagos Green Line Rail Project, which involves an agreement with China Harbour Engineering Company (CHEC) to design, finance, and operate the line.

Running from Marina to Lekki Free Zone, the Green Line will feature 17 stations, covering areas like Victoria Island, Lekki, and Ajah, aimed at transforming urban mobility and fostering commercial growth.

The federal government also approved a $652-million China Exim Bank funding package for the construction of a road to move goods from a seaport and petroleum refinery on the edge of its main city, Lagos, to its southern states.

The sector also saw €410 million in financing backed by the European Union, European Investment Bank, and French Development Agency for the Lagos State Omi Eko water transport project to integrate ferry services with existing road and rail networks to deliver a seamless and multi-modal transportation system.

According to Stren&Blan partners, the federal government’s flagship CNG programme scaled up sharply in Q4, as the PI-CNG reported $2 billion in private investment commitments and over 100,000 vehicles converted to CNG nationwide.

With transport contributing just about 1 percent to real Gross Domestic Product (GDP), Nigeria’s poor infrastructure highlights both the sector’s underdevelopment and its vast investment potential.