The United Kingdom emerged as the leading contributor to Nigeria’s foreign capital inflows in the first quarter of 2025, accounting for more than 65 per cent of total investment, according to the latest Capital Importation report from the National Bureau of Statistics (NBS).
The report revealed that UK-based investors injected $3.68 billion (N5.52 trillion at N1,500/$) into the Nigerian economy between January and March, representing a 29.2 per cent increase from the $2.85 billion recorded in Q4 2024 and more than doubling the $1.81 billion reported in Q1 2024.
Overall, total capital importation for the quarter reached $5.64 billion, up 10.9 per cent from the previous quarter and 67.1 per cent higher than the $3.38 billion recorded during the same period in 2024.
The NBS stated, “Capital importation during the reference period originated largely from the United Kingdom with $3,681.96 million, showing 65.26 per cent of the total capital imported.”
South Africa emerged as the second-largest source of capital, supplying $501.29 million or 8.88 per cent of the total.
Mauritius followed closely with $394.51 million, while the United States contributed $368.92 million, marking a significant increase from $89.27 million in Q1 2024 despite a 38.2 per cent decline from Q4 2024.
The United Arab Emirates also increased its inflows to $301.72 million, nearly tripling its contributions from the same period last year.
Other notable contributors 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). Collectively, the top five countries—the UK, South Africa, the US, Mauritius, and UAE—accounted for over 92 per cent of all recorded inflows in the quarter, highlighting a concentrated but strategic pattern of foreign investment.
Experts suggest that Nigeria’s sustained economic reforms, improved business environment, and rising investor confidence have helped maintain the country’s appeal to foreign capital.
Research conducted by UK-based Strategy Management Partners indicated that over 50 per cent of British companies with annual turnovers above £20 million are already operating in African markets, while another 28 per cent are exploring expansion opportunities across the continent.
“Africa is increasingly viewed as a region of transformative potential, not merely as a source of raw materials,” the report noted.
“From Lagos to Nairobi, investors are recognising opportunities in sectors such as technology, oil and gas, power including renewables, agriculture, manufacturing, infrastructure, and strategic minerals.”
Analysts say that the UK’s dominance in Nigeria’s capital inflows reflects strong bilateral financial ties and strategic confidence in the country’s economic direction.
However, they caution that heavy reliance on a few source countries could expose Nigeria to volatility if investor sentiment shifts unexpectedly.
The Nigerian government has continued to emphasise policy reforms aimed at attracting and retaining foreign investment, including tax incentives, improved regulatory frameworks, and digitisation of trade and capital flow monitoring.
These efforts, coupled with Nigeria’s demographic advantages, strategic location, and natural resource endowments, have strengthened the country’s profile as Africa’s leading investment destination.
With Q1 2025 marking a robust start to the year, industry watchers remain optimistic that continued inflows from traditional and emerging investors could drive growth, create employment, and expand the nation’s foreign exchange reserves.