Capital importation into Nigeria surged by 67.12% year-on-year in the first quarter of 2025, reaching $5.642 billion compared to $3.376 billion in Q1 2024, according to the National Bureau of Statistics (NBS). The quarterly figures also showed a 10.86% increase over Q4 2024, which recorded $5.089 billion. This growth signals a renewed investor interest in the Nigerian economy amid ongoing reforms and global economic shifts.
Portfolio investment remained the dominant source of capital, accounting for 92.25% of the total inflow with $5.2 billion. Other investments followed with $311.17 million, while Foreign Direct Investment (FDI) was significantly lower at $126.29 million, representing just 2.24% of the capital inflow. Analysts suggest this highlights a short-term investor preference for quick returns rather than long-term commitments.
Sector-wise, the banking industry attracted the lion’s share of capital, receiving $3.13 billion or 55.44% of the total inflows. The financing sector came next with $2.1 billion (37.18%), while the production/manufacturing sector saw $129.92 million (2.30%). The NBS data reflects strong confidence in Nigeria’s financial services ecosystem as a key driver of economic activity.
The United Kingdom emerged as the leading source of Nigeria’s capital importation, contributing $3.68 billion or 65.26% of the total. South Africa and Mauritius followed with $501.29 million and $394.51 million, respectively. This geographic breakdown underscores Nigeria’s enduring economic ties with both Western and African markets.
In terms of destination within the country, the Federal Capital Territory (FCT) Abuja led the way, attracting $3.05 billion or 54.11% of the capital. Lagos State followed closely with $2.56 billion (45.44%), while other states like Ogun, Oyo, and Kaduna received marginal inflows. The data reaffirms Abuja and Lagos as Nigeria’s core investment hubs, with infrastructure and institutional advantages continuing to draw foreign interest.
Source: Vanguard