Nigeria experienced a significant boost in foreign capital inflows in the first quarter (Q1) of 2025, with total capital importation rising to $5.642 billion. This marks a 67.12% increase from $3.376 billion recorded in the same period in 2024 and a 10.86% increase compared to Q4 2024. The National Bureau of Statistics (NBS) revealed these figures in its latest report, underscoring a growing investor appetite for Nigerian assets amid economic reforms and currency stability.
Portfolio investment dominated the capital importation landscape, accounting for $5.204 billion—over 92% of total inflows. This was followed by other investments amounting to $311.17 million, while foreign direct investment (FDI) lagged at $126.29 million. The data indicates that while short-term speculative investments remain strong, long-term equity commitments like FDI are still modest.
By sector, the banking industry emerged as the top recipient, attracting $3.127 billion—representing 55.44% of the total capital imported in Q1 2025. The financing sector followed with $2.097 billion (37.18%), while production and manufacturing trailed behind at $129.92 million (2.30%). This suggests that investors are largely drawn to Nigeria’s financial services sector, likely due to its quick returns and relative liquidity.
The report also identified the United Kingdom as the leading source of capital, contributing $3.681 billion or 65.26% of total foreign inflows. South Africa and Mauritius followed with $501.29 million and $394.51 million, respectively. This distribution reflects strong investor confidence from both Western and African financial hubs.
Geographically, Abuja (FCT) topped the list of investment destinations, securing $3.047 billion, followed closely by Lagos State with $2.564 billion. Other states with smaller inflows included Ogun, Oyo, and Kaduna. Among financial institutions, Standard Chartered Bank Nigeria Ltd led with $2.103 billion in capital inflows, followed by Stanbic IBTC and Citibank Nigeria, highlighting the role of established banks in facilitating foreign investment.
Source: Business day