By Joy Yesufu
Nigeria’s capital importation rose to $23bn in 2025 from more than $12bn in 2024, while the country’s foreign exchange reserves exceeded $50bn, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, has said.
Oduwole, however, stressed the need to convert the improved economic indicators into productive investments capable of expanding local businesses, increasing exports and creating jobs.
She disclosed this on Monday while delivering the keynote address at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit in Lagos.
Speaking on the theme, “Investor Confidence and ADR: Strengthening Nigeria’s Investment Climate,” the minister 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 said the economy grew by more than four per cent in 2025 and maintained growth above that level in the first half of 2026, while inflation declined from 33.2 per cent in 2024 to 14.63 per cent in September 2026.
Oduwole attributed the reported improvements to reforms introduced by President Bola Tinubu’s administration, including foreign exchange market unification, petrol subsidy removal, tax reforms and banking recapitalisation.
According to her, Nigeria’s non-oil exports also reached a record value of more than $6bn, covering products such as cocoa derivatives, fertiliser, cashew, dairy, pulp and paper, and cassava starch.
She said the creative and digital sectors contributed significantly to economic activity, accounting for approximately 18 per cent of gross domestic product and supporting millions of jobs, while expanding exports to markets within and outside Africa.
The minister identified manufacturing, agribusiness, financial technology, renewable energy and infrastructure as sectors offering growing opportunities for foreign direct investment, pointing to efforts to diversify the economy beyond oil.
She cautioned, however, that the volume of capital inflows alone was not enough, noting that a significant proportion of recent investments consisted of short-term portfolio funds channelled into money market instruments and bonds.
According to her, Nigeria must attract more long-term capital into factories, infrastructure and productive enterprises to generate sustainable employment and strengthen domestic production.
“The quality of capital matters as much as the volume,” she said, emphasising the need for investments that would expand output, create jobs and boost exports.
Oduwole identified the efficiency of the country’s commercial dispute-resolution system as another critical factor in attracting and retaining investment.
She said investors assessed the reliability of institutions, clarity of regulations, enforceability of contracts and fairness of dispute-resolution processes before committing capital to long-term projects.
Lengthy and unpredictable commercial disputes, she warned, could increase business costs and discourage investors, particularly those considering complex transactions and infrastructure projects.
The minister said alternative dispute resolution (ADR), including mediation and arbitration, could help reduce the time and cost of resolving commercial disagreements, preserve business relationships and strengthen investor confidence.
She disclosed that the Federal Ministry of Industry, Trade and Investment was advancing reforms to Nigeria’s investment regulatory framework, including provisions for an investment ombudsman to address investors’ grievances 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 commended the Lagos State Judiciary and the Lagos Multi-Door Courthouse for providing channels for mediation, arbitration and other forms of amicable dispute resolution.
Reflecting on her previous role as Special Adviser to the President on Ease of Doing Business, she said she worked with state judiciaries and other stakeholders through the Presidential Enabling Business Environment Council to establish small claims courts.
She explained that the courts were designed to provide simpler, faster and more affordable resolution of small commercial claims, particularly those involving micro, small and medium-sized enterprises.
According to her, 35 jurisdictions across Nigeria had established small claims courts by the end of her tenure in the role.
The minister called for stronger collaboration among the judiciary, executive, legal profession and private sector to expand the use of ADR, prevent commercial disputes and strengthen expertise in mediation and investment arbitration.
She urged summit participants to develop practical measures to accelerate dispute resolution, improve institutional coordination and boost 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, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), said arbitration and mediation were essential to reducing business risks, strengthening investor confidence and promoting sustainable investment.
In his goodwill message, Fagbemi highlighted Federal Government efforts to strengthen Nigeria’s ADR framework, including a review of the arbitration and dispute-resolution system, 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.
He said the measures were intended to position Nigeria as a leading arbitration hub in Africa.
Fagbemi also commended the Lagos State Multi-Door Courthouse, describing it as Africa’s first court-connected ADR centre and an example of the growing role of alternative mechanisms in modern justice delivery.
He reaffirmed the Federal Government’s commitment to supporting similar initiatives across the country, saying the integration of ADR into the justice system could improve economic competitiveness by enabling businesses to resolve disputes without the delays and costs associated with prolonged litigation.
Citing former United Nations Secretary-General Kofi Annan’s remarks on the resolution of the Bakassi Peninsula dispute, Fagbemi said: “Litigation may win cases, but mediation wins peace.”
He urged stakeholders to work together to strengthen dispute-resolution mechanisms, promote economic growth and position Nigeria as a leading destination for efficient and innovative commercial dispute resolution.
