NBS
Capital importation into Nigeria surged to $5.6 billion in the first quarter of 2025, representing a 67.12% increase compared to $3.4 billion recorded in the same period of 2024. This significant growth reflects a 10.86% rise from the $5.1 billion reported in the fourth quarter of 2024. The National Bureau of Statistics (NBS) report highlights the increasing confidence of foreign investors in Nigeria’s economy.
The Federal Capital Territory (FCT) received the highest amount of capital importation in Q1 2025, with $3.047 billion, accounting for 54.11% of the total capital imported. This marks the first time Abuja has overtaken Lagos as the top destination since Q1 2018. Lagos State received $2.564 billion, representing 45.44% of the total capital imported. Other states, such as Ogun, Oyo, and Kaduna, also received significant investments, although at a much lower scale.
The banking sector recorded the highest inflow with $3.127 billion, representing 55.44% of total capital imported. The financing sector followed closely, valued at $2.097 billion, accounting for 37.18% of total capital imported. The production/manufacturing sector received $129.92 million, representing 2.30% of total capital imported. These sectors have been major drivers of economic growth, and the increased investment is expected to boost their performance.
Portfolio investment dominated the inflows with $5.2 billion, accounting for 92.25% of the total importation. Other investments totaled $311.17 million, accounting for 5.52%. Foreign Direct Investment (FDI) recorded the least with $126.29 million, accounting for 2.24% of total capital importation. The dominance of portfolio investment highlights the importance of a stable and attractive stock market in attracting foreign capital.
The surge in capital importation is a positive sign for Nigeria’s economy, indicating increased confidence from foreign investors. The growth in investment is expected to boost economic activity, create jobs, and increase revenue. However, the government must ensure that the investments are channeled towards productive sectors that can drive sustainable economic growth.
The FCT’s emergence as the top destination for capital importation is a significant development. It highlights the efforts of the government to improve the business environment and infrastructure in the nation’s capital. The increased investment in Abuja is expected to boost economic activity, create jobs, and increase revenue for the government.
Overall, the increase in capital importation is a welcome development for Nigeria’s economy. It highlights the potential for growth and development, and the government must continue to create an enabling environment for investors to thrive. With the right policies and strategies, Nigeria can attract more investments and achieve sustainable economic growth.
