Abuja Surpasses Lagos as Nigeria’s Top Foreign Investment Hub with $5.64bn Inflows in Q1 2025
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Written by SpringnewsNG Media Limited AUGUST 6,2025
August 6, 2025 – Abuja has overtaken Lagos as Nigeria’s leading destination for foreign capital inflows, as total capital importation into the country surged to $5.64 billion in the first quarter (Q1) of 2025, according to the National Bureau of Statistics (NBS).
The latest report titled “Nigeria Capital Importation Q1 2025”, released on Tuesday, August 5, revealed that the Federal Capital Territory (FCT) Abuja attracted $3.05 billion, accounting for 54.11% of the total inflows. This marks the first time Abuja has outpaced Lagos as the primary hub for foreign investment in Nigeria.
Lagos State followed with $2.56 billion, while other states recorded minimal inflows:
- Ogun State: $7.95 million
- Oyo State: $7.81 million
- Kaduna State: $4.06 million
This trend highlights growing concerns that only a handful of Nigerian states continue to attract foreign investments, leaving most of the country with little to no capital inflows.
Nigeria’s total foreign capital inflows for Q1 2025 rose 67.12% year-on-year, up from $3.38 billion in Q1 2024, and 10.86% higher than $5.09 billion recorded in Q4 2024.
A breakdown of the inflows showed:
- Portfolio Investment: $5.20 billion (92.25%)
- Other Investment: $311.17 million
- Foreign Direct Investment (FDI): $126.29 million
Analysts note that portfolio investments, often considered “hot money”, dominate Nigeria’s capital inflows as foreign investors primarily target stocks and government bonds. This type of investment, however, is highly volatile and prone to sudden exits if economic conditions weaken.
Experts warn that while the rise in capital importation signals renewed foreign interest, Nigeria’s heavy reliance on short-term portfolio inflows may pose risks to long-term economic stability.
