Foreign Direct Investment (FDI) into Nigeria fell sharply by 70.06% in the first quarter of 2025, dropping to $126.29m from $421.88m in the previous quarter, according to new data from the National Bureau of Statistics (NBS).
The slump came despite a rise in total capital importation, as foreign investors poured money into short-term, high-yield instruments such as government bonds and treasury bills, while shunning long-term commitments in the real economy.
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FDI accounted for just 2.24% of total capital inflows in Q1, down from 8.29% in Q4 2024 and below the 3.53% recorded in Q1 2024. Equity investment, the largest component of FDI, fell 70.36% to $124.31m.
By contrast, total capital inflows rose to $5.64bn, up from $5.09bn in the previous quarter and $3.38bn a year earlier, with over 90% going into money market instruments. Economists say such speculative inflows can exit quickly and do little to boost industrial growth or job creation.
The manufacturing sector saw capital inflows shrink 32.31% year-on-year to $129.92m in Q1, reflecting persistent investor caution after multinationals exited Nigeria in 2023–2024 amid tough reforms.
