Nigeria recorded a sharp increase in foreign capital inflows in the first quarter with the United Kingdom accounting for more than 65 per cent of total investments, according to the latest Capital Importation report released by the National Bureau of Statistics (NBS).
Total capital importation stood at $5.64 billion in Q1 2025, a 67.1 per cent increase from $3.38 billion recorded in the same quarter of 2024 and a 10.9 per cent rise compared to $5.09 billion in Q4 2024.
The report showed Britain’s dominant role in Nigeria’s external financing profile as capital inflows from the UK surged to $3.68 billion (₦5.52 trillion at ₦1,500/$), accounting for 65.26 per cent of total inflows during the quarter.
This represents a 29.2 per cent increase from $2.85 billion in Q4 2024 and more than double the $1.81 billion reported in Q1 2024.
The data underscores the UK’s position as Nigeria’s leading investment partner, reflecting continued bilateral and financial ties even amid global economic uncertainties.
South Africa ranked as the second-largest source of foreign capital with $501.29 million, representing 8.88 per cent of total inflows.
This was 10.2 per cent higher than the $454.94 million recorded in Q4 2024 but lower than the $582.34 million reported in Q1 2024.
Mauritius contributed $394.51 million (6.99 per cent), more than doubling the $182.40 million inflow in the previous quarter and up 119.5 per cent from a year earlier.
The United States followed with $368.92 million (6.54 per cent), though significantly lower than the $596.77 million recorded in Q4 2024. On a year-on-year basis, U.S. inflows surged more than threefold from $89.27 million in Q1 2024.
The United Arab Emirates (UAE) also strengthened its presence, providing $301.72 million (5.35 per cent), up 178.1 per cent from Q4 2024 and nearly triple the $101.76 million recorded a year earlier.
Other notable sources included the Cayman Islands ($114.76 million), Belgium ($70.54 million), France ($47.33 million), the Netherlands ($42.68 million), and Singapore ($36.79 million).
The NBS report noted that capital inflows remain highly concentrated. The top five countries — the UK, South Africa, the US, Mauritius, and the UAE — accounted for over 92 per cent of total capital importation in Q1 2025.
While this highlights strong financial links with these nations, analysts caution that such concentration exposes Nigeria to volatility risks if investor sentiment in these jurisdictions shifts.
Research by UK-based Strategy Management Partners further explains Britain’s strong presence in Nigeria.
A Q1 2025 survey of 250 UK executives showed that 50 per cent of British firms with annual turnover above £20 million are already operating in African markets and planning expansion. An additional 28 per cent expressed interest in entering the continent.
Nigeria’s inflows are concentrated in sectors such as technology, oil and gas, power (including renewables), agriculture, manufacturing, infrastructure, and strategic minerals, aligning with the country’s economic diversification agenda.
Nigeria’s rising capital inflows reflect renewed investor confidence and growing appetite for African markets, with the UK maintaining a commanding lead.
However, the high concentration of inflows from a handful of countries highlights the need for Nigeria to broaden its investor base and strengthen domestic reforms to sustain long-term growth.
