Nigeria’s foreign capital inflows in the first quarter of 2025 reached $5.64 billion, marking a substantial increase of 10.9% compared to the previous quarter and a remarkable 67.1% surge compared to the same period in 2024. This growth underscores the increasing attractiveness of the Nigerian economy to international investors. Notably, the United Kingdom played a dominant role, contributing over $3.68 billion, which constituted more than 65% of the total capital imported. This signifies the UK’s continued position as the primary gateway for foreign investment into Nigeria, highlighting the strong economic ties between the two nations. This dominance underscores the importance of the UK-Nigeria investment relationship and its potential impact on Nigeria’s economic development.
Further analysis reveals a concentration of capital sources, with the top five countries – the UK, South Africa, Mauritius, the United States, and the United Arab Emirates – accounting for over 92% of total inflows. South Africa emerged as the second largest contributor with $501.29 million, followed by Mauritius with $394.51 million, the US with $368.92 million, and the UAE with $301.72 million. While this concentration indicates strong bilateral relations with these key partners, it also exposes Nigeria to potential volatility if investor sentiment in these countries were to shift. Diversifying the sources of foreign capital remains a crucial objective for Nigeria to mitigate this risk and enhance economic stability.
While the UK’s investment dominated the landscape, other countries also demonstrated significant contributions. Mauritius more than doubled its investment from the previous quarter, while the UAE nearly tripled its investment compared to the same period in the previous year. The US, despite a decrease from the previous quarter, saw a substantial increase compared to Q1 2024. These figures highlight the growing interest in the Nigerian market from diverse global investors. The increased participation from various countries suggests that Nigeria’s investment appeal is broadening, potentially signifying growing confidence in the nation’s economic prospects.
The report’s findings also highlight an evolving perception of Africa, particularly among UK businesses. A survey of UK executives revealed a growing recognition of Africa as a key strategic growth region, fueled by structural reforms, demographic momentum, and rapid digital transformation. Half of the surveyed companies with substantial turnovers were already operating in African markets and planned further expansion, while another significant portion expressed interest in entering the continent. This shift in perspective from viewing Africa primarily as a source of raw materials to recognizing its transformational potential is a significant development. This change in perspective signals a growing appreciation for the continent’s evolving economic landscape and its potential for long-term growth.
This growing interest in Africa, and Nigeria in particular, is driven by several factors. The continent is rich in natural resources, holding a significant share of global reserves of minerals, natural gas, and oil. It also possesses vast arable land and a rapidly growing workforce, expected to comprise a quarter of the global workforce by 2035. These factors, combined with ongoing economic reforms and digital advancements, create a compelling case for investment. These abundant resources and favorable demographics position Africa as a promising destination for long-term investment and economic partnership.
Specific sectors within Africa are attracting significant international capital, including technology, oil and gas, power (including renewables), agriculture, manufacturing, infrastructure, and strategic minerals. These sectors represent key areas for growth and development, offering attractive opportunities for investors seeking both financial returns and positive social impact. The focus on these sectors reflects a broader trend of investment in areas that can drive sustainable development and contribute to the continent’s long-term economic transformation. The influx of capital into these sectors can contribute to job creation, infrastructure development, and overall economic growth, further solidifying Africa’s position as a key player in the global economy.
