Nigeria’s manufacturing sector has suffered a steep setback in attracting foreign investment, with capital inflows plunging by 50.7% in Q1 2026, raising fresh concerns about the country’s industrial growth momentum despite a broader surge in national capital importation.
According to data released by the National Bureau of Statistics, the production and manufacturing sector attracted $152.27 million, representing just 1.47% of Nigeria’s total $10.37 billion capital inflows recorded in the quarter.
The sharp decline highlights a weakening appetite among foreign investors for Nigeria’s productive and industrial base, even as the country continues to push for diversification away from oil dependency. Analysts say this trend could slow down factory expansion, job creation, and export capacity if it persists.
On a quarter-on-quarter basis, manufacturing inflows dropped significantly from $308.93 million in Q4 2025, while still showing a modest year-on-year increase of 17.2% compared to $129.92 million in Q1 2025. Despite this annual improvement, the sector’s overall performance remains fragile.
The broader investment picture tells a different story, as Nigeria recorded a strong 83.8% surge in total capital importation, driven largely by portfolio investments and short-term financial flows rather than long-term commitments. Foreign Direct Investment (FDI) also remained weak at $135.08 million, underscoring the economy’s reliance on non-productive capital inflows.
source: The Guardian