Foreign direct investments into Nigeria dropped sharply by 70.06 percent quarter-on-quarter to $126.29m in the first quarter of 2025.
This is according to the latest Capital Importation report
released by the National Bureau of Statistics.
The drop in FDI in the three months of 2025 occurred despite
an overall increase in capital importation into the country to
$5.64 billion, an increase from $5.09 billion in the same
quarter of 2024 and $3.38 billion in Q1 last year.
This indicates that foreign investors are favouring
short-term financial instruments in Nigeria over long-term ones.
Meanwhile, on a year-on-year basis, FDI posted a modest
growth of 5.97 percent compared to $119.18m.
A further breakdown showed that 2.24 percent of total
capital was imported into the country in Q1 2025, down from 8.29 percent in the
preceding quarter and below the 3.53 percent recorded in Q1 2024.
The development shows the disparity between capital inflows
and actual investment in sectors capable of driving economic growth.
NBS data indicated that the bulk of this figure— around
$4.21 billion, or 74.6 percent of the country’s $5.46 billion capital
importation in Q1 2025— was invested in money market instruments, primarily
Open Market Operation bills and Treasury Bills.
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