Foreign capital inflows into Nigeria surged by 67.12% year-on-year in the first quarter of 2025 (Q1’25), reaching $5.642 billion compared to $3.376 billion recorded in Q1’24, according to the latest report released by the National Bureau of Statistics (NBS).
The NBS Nigeria Capital Importation (Q1 2025) report highlights a sharp uptick in investor confidence, with Portfolio Investment emerging as the dominant component, accounting for $5.2 billion or 92.25% of total inflows. This was followed by Other Investment, which contributed $311.17 million (5.52%), while Foreign Direct Investment (FDI) trailed with $126.29 million (2.24%).
On a quarter-on-quarter basis, capital importation rose by 10.86%, up from $5.089 billion in Q4 2024, signalling a steady upward trend in foreign investment inflows into the country.
The Banking sector attracted the highest investment during the period, with inflows totaling $3.127 billion, representing 55.44% of the overall capital importation. The Financing sector followed with $2.097 billion (37.18%), while Production/Manufacturing received $129.92 million (2.30%).
In terms of country of origin, the United Kingdom led the pack, contributing $3.68 billion or 65.26% of the total capital imported into Nigeria. South Africa and Mauritius followed with $501.29 million (8.88%) and $394.51 million (6.99%) respectively.
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Geographically, the Federal Capital Territory (Abuja) was the top investment destination, attracting $3.047 billion, which represents 54.11% of total capital inflows. Lagos State followed closely with $2.564 billion (45.44%). Other states that recorded capital importation include Ogun ($7.95 million), Oyo ($7.81 million), and Kaduna ($4.06 million).
Analysts suggest that the overwhelming dominance of portfolio investment—typically short-term in nature—underscores the need for policies that stimulate long-term capital such as FDI, which remains critically low.
As Nigeria continues to court foreign investors, stakeholders emphasize the importance of improving macroeconomic stability, easing business regulations, and strengthening security to sustain and grow capital inflows.