Abuja, the Federal Capital Territory, has emerged as Nigeria's leading destination for foreign investments in the first quarter of 2025, overtaking Lagos State which has traditionally dominated capital inflows.
According to the latest report by the National Bureau of Statistics (NBS) titled 'Nigeria Capital Importation Q1 2025', total capital inflows into Nigeria surged by 67.12 percent to $5.6 billion compared to $3.4 billion recorded in the same period of 2024.
The report also revealed a 10.86 percent increase from the $5.1 billion reported in the fourth quarter of 2024, indicating a positive trajectory for Nigeria's investment climate.
Abuja Takes the Lead
The NBS report highlighted that Abuja secured $3.05 billion, representing 54.11 percent of the total capital imported during the quarter. Lagos followed closely with $2.56 billion, accounting for 45.44 percent of the inflows.
Other states that attracted foreign investments included Ogun State with $7.95 million (0.14 percent), Oyo State with $7.81 million, and Kaduna State with $4.06 million.
Portfolio Investments Dominate
The report indicated that portfolio investments ranked highest among the types of capital importation, accounting for $5.2 billion or 92.25 percent of the total inflows. This was followed by other investments with $311.17 million, representing 5.52 percent of the total.
This significant increase in capital importation suggests growing investor confidence in Nigeria's economy, despite global economic challenges and domestic concerns.
Economic analysts attribute Abuja's rise as the preferred investment destination to improved infrastructure, security measures, and government policies aimed at attracting foreign investors to the nation's capital.
The shift in investment patterns could potentially influence future economic development strategies for both Abuja and Lagos, as competition for foreign capital intensifies between Nigeria's two most prominent cities.
Stay updated with the latest business and economic news by following BenriNews on our social media platforms: Facebook, Twitter, LinkedIn, WhatsApp, and Telegram.
