Abuja Overtakes Lagos As Nigeria Records $5.64bn Capital Importation In Q1

Nigeria recorded a substantial capital importation of $5.642 billion in the first quarter of 2025, reflecting renewed investor confidence and marking a significant shift in investment destination preferences within the country.

According to the latest figures released by the National Bureau of Statistics (NBS), the Federal Capital Territory (FCT), Abuja, outperformed Lagos State in terms of emerging as the top recipient of foreign capital during the quarter.

The Q1 2025 capital inflow represents a 67.12 per cent increase compared to the $3.376 billion recorded in the corresponding period of 2024.

It also marks a 10.86 per cent rise over the $5.089 billion posted in the fourth quarter of 2024, signalling  a growing momentum in foreign investment inflows.

A state-by-state breakdown of the inflows reveals that Abuja attracted $3.047 billion, accounting for 54.11 per cent of the total capital importation in the period under review. This development pushed the nation’s capital ahead of Lagos, which secured $2.564 billion, representing 45.44 per cent of the total.

Ogun State came a distant third with $7.95 million, followed by Oyo and Kaduna States, which received $7.81 million and $4.06 million, respectively.

The data shows that Portfolio Investment was the dominant form of capital inflow, contributing $5.204 billion to the overall figure. Other Investments accounted for $311.17 million, while foreign direct investment (FDI) lagged behind at $126.29 million.

The overwhelming share of portfolio investment underscores investor preference for liquid and marketable assets amid evolving macroeconomic conditions.

The banking industry emerged as the top beneficiary by sector, attracting $3.127 billion, representing 55.44 per cent of total inflows.

The financing sector followed with $2.097 billion, or 37.18 per cent. Meanwhile, the production and manufacturing sector received $129.92 million, or about 2.30 per cent of the total.

The United Kingdom was Nigeria’s largest capital source during the period, contributing $3.681 billion, approximately 65.26 per cent of the total inflows. South Africa followed with $501.29 million (8.88 per cent), while Mauritius supplied $394.51 million (6.99 per cent).

The report also highlighted the role of financial institutions in facilitating the inflows. Standard Chartered Bank Nigeria Ltd led the pack, processing $2.103 billion in capital importation. Stanbic IBTC Bank Plc followed closely with $1.398 billion, while Citibank Nigeria Limited facilitated $1.052 billion.

The strong performance in Q1 2025, especially in portfolio inflows and capital concentration in Abuja, reflects growing investor interest in Nigeria’s economy, bolstered by macroeconomic adjustments and ongoing policy reforms.

Many believe that the investor destination shift from Lagos to Abuja could be linked to evolving infrastructure, policy accessibility, and emerging financial opportunities in the nation’s capital.

As the Central Bank of Nigeria and other key institutions continue implementing stability-focused monetary and fiscal policies, market watchers anticipate sustained momentum in foreign capital inflows in the quarters ahead.