Nigeria’s capital importation soared by 67.12% year-on-year to $5.642 billion in the first quarter of 2025, up from $3.376 billion in Q1 2024, according to the National Bureau of Statistics (NBS). The figure also reflects a 10.86% increase from $5.089 billion in Q4 2024, signaling growing investor confidence despite economic challenges like naira depreciation (N1,565/$1 in the parallel market) and inflation (22.22% in June).
The NBS report highlighted portfolio investment as the dominant driver, contributing $5.205 billion or 92.25% of total inflows, followed by other investments at $311.17 million (5.52%). Foreign Direct Investment (FDI) trailed at $126.29 million, accounting for just 2.24%. The banking sector led with $3.128 billion (55.44%), followed by the financing sector at $2.097 billion (37.18%) and the production/manufacturing sector at $129.92 million (2.30%).
Geographically, the United Kingdom was the largest source of capital, contributing $3.682 billion (65.26%), followed by South Africa ($501.29 million, 8.88%) and Mauritius ($394.51 million, 6.99%). Within Nigeria, Abuja (FCT) attracted the most inflows at $3.047 billion (54.11%), followed by Lagos State with $2.565 billion (45.44%). Ogun, Oyo, and Kaduna states recorded minor shares at $7.95 million, $7.81 million, and $4.06 million, respectively.
The surge in capital inflows aligns with Central Bank of Nigeria (CBN) reforms, including unified exchange rates and $4.1 billion in forex interventions in H1 2025, which have stabilized the naira and boosted investor sentiment. The Nigerian Exchange’s 39.98% year-to-date gain further underscores this optimism. Analysts attribute the growth to robust banking sector performance and increased portfolio investments, though sustained efforts to address insecurity and infrastructure gaps are critical to maintaining this momentum.
