The Federal Capital Territory (FCT), Abuja, has emerged as Nigeria’s new leader in foreign capital attraction, surpassing Lagos for the first time with $3.05 billion in capital inflows in the first quarter of 2025.
This is according to the latest Capital Importation Report released by the National Bureau of Statistics (NBS) on Tuesday, August 5. The report shows Abuja accounted for 54.11% of the total capital importation of $5.64 billion recorded in Q1.
Lagos, which has historically led as the investment hub, followed closely with $2.56 billion. Other states that received foreign capital were Ogun ($7.95 million), Oyo ($7.81 million), and Kaduna ($4.06 million).
Despite the positive overall growth, only five out of 36 states and the FCT recorded any form of capital importation, raising fresh concerns about regional investment imbalances across the country.
Compared to Q1 2024, when Nigeria recorded $3.38 billion in capital inflows, the Q1 2025 figure marks a 67.1% increase. It also represents a 10.9% rise from Q4 2024’s $5.09 billion.
Hot Money Dominates
A breakdown of the inflows shows portfolio investments — often considered short-term “hot money” — made up the bulk at $5.2 billion or 92.25% of the total. Other investments stood at $311.17 million, while Foreign Direct Investment (FDI) contributed just $126.29 million.
Experts warn that while the increase in capital importation is welcome, the dominance of portfolio inflows makes Nigeria vulnerable to sudden capital flight during economic instability.
Uneven Spread Remains a Challenge
The lopsided nature of foreign investment remains a concern. Analysts stress that creating an enabling business environment in more states is critical to achieving balanced economic development.
Abuja’s rise as the top destination signals shifting investor confidence but also underscores the need for policy action to spread growth opportunities nationwide.
@2025 The Ameh News: All Rights Reserved
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