UK Dominates Nigeria’s Q1 2025 Capital Inflows with ₦5.5 Trillion Investment
The United Kingdom emerged as Nigeria’s leading source of foreign capital in the first quarter of 2025, contributing ₦5.52 trillion ($3.68 billion) — over 65% of the total inflows during the period. According to the latest Capital Importation Report by the National Bureau of Statistics (NBS), this represents a 29.2% increase from $2.85 billion in Q4 2024 and an impressive 103.9% surge compared to $1.81 billion in Q1 2024.
Overall, Nigeria attracted $5.64 billion in capital inflows in Q1 2025, up 10.9% from $5.09 billion in the previous quarter and 67.1% higher than the $3.38 billion recorded in the same period last year. The data underscores the UK’s dominant role in Nigeria’s external financing landscape, maintaining its position as the top gateway for capital into the country.
South Africa ranked as the second-largest contributor, providing $501.29 million (8.88% of the total), followed by Mauritius with $394.51 million (6.99%). The United States contributed $368.92 million (6.54%), despite a sharp decline from $596.77 million in Q4 2024, while the United Arab Emirates injected $301.72 million, marking a significant 178.1% increase from the previous quarter.
Other notable sources included the Cayman Islands ($114.76m), Belgium ($70.54m), France ($47.33m), the Netherlands ($42.68m), and Singapore ($36.79m). The NBS highlighted that the top five countries — the UK, South Africa, Mauritius, the US, and the UAE — accounted for more than 92% of total inflows, reflecting heavy dependence on a few markets and the associated risks of capital volatility.
Experts attribute the surge in UK investments to structural reforms in Nigeria and Africa’s growing appeal as a strategic growth destination. A recent survey by Strategy Management Partners revealed that 50% of UK firms with revenues above £20 million already operate in Africa and plan further expansion. Key sectors attracting international capital include technology, oil and gas, renewables, agriculture, manufacturing, and infrastructure, positioning Nigeria as a top beneficiary of this investment trend.
Source: Punch