The Federal Capital Territory (FCT) has been identified as the leading recipient of foreign investment in Nigeria, as revealed in a recent report by the National Bureau of Statistics (NBS).
Abuja Surpasses Lagos as Nigeria’s Leading Destination for Foreign Capital in Q1 2025 – NBS Report
For the first time in recent history, Abuja, Nigeria’s Federal Capital Territory (FCT), has overtaken Lagos State as the country’s top recipient of foreign capital, according to the Capital Importation Report for the first quarter (Q1) of 2025, released by the National Bureau of Statistics (NBS).
The data revealed that Abuja attracted an impressive $3.04 billion in capital inflows between January and March 2025. In contrast, Lagos, historically the nation’s commercial capital and top investment destination, recorded $2.54 billion during the same period. This shift marks a significant development in the country’s investment landscape, as Lagos has long held the position as Nigeria’s number one hub for foreign capital importation.
Following Abuja and Lagos, a distant third was Ogun State, which received $7.95 million, while Oyo and Kaduna States followed with $7.81 million and $4.06 million respectively. These were the only five states that recorded any foreign capital inflow during the quarter.
National Capital Inflow Sees Major Increase Year-on-Year
In total, Nigeria recorded $5.64 billion in foreign capital importation during Q1 2025. This represents a 67.12 percent increase compared to the same period in 2024, when the country brought in $3.37 billion. The quarterly comparison also shows progress — Q4 2024 saw inflows of $5.08 billion, making Q1 2025’s figures a 10.86 percent rise over the previous quarter.
Portfolio Investment Dominates Inflow Breakdown
The NBS provided a breakdown of the sources of this capital, noting that Portfolio Investments dominated the inflow structure, accounting for $5.20 billion, which is approximately 92.25 percent of the total. Other Investments followed with $311.17 million (5.52 percent), while Foreign Direct Investment (FDI) contributed the least at $126.29 million, making up just 2.24 percent of the total capital inflow.
Banking Sector Emerges as Top Beneficiary
The Banking sector stood out as the biggest recipient of foreign capital, attracting $3.12 billion, or 55.44 percent of all capital brought into Nigeria during the quarter. Next was the Financing sector, which received $2.09 billion (37.18 percent). The Production and Manufacturing sector followed at a distant third, securing only $129.92 million, representing 2.30 percent of the total.
United Kingdom Leads as Primary Source of Capital
The United Kingdom emerged as the dominant source of foreign capital to Nigeria, contributing a significant $3.68 billion, which accounts for 65.26 percent of the overall capital imported. This was followed by South Africa, with a contribution of $501.29 million (8.88 percent), and Mauritius, which brought in $394.51 million (6.99 percent).
Top Banks Handling Capital Importation
According to the report, Standard Chartered Bank Nigeria Limited facilitated the highest volume of capital importation in Q1 2025, handling $2.10 billion, representing 37.29 percent of the total. This was followed by Stanbic IBTC Bank PLC, which brought in $1.39 billion (24.78 percent), and Citibank Nigeria Limited, which processed $1.05 billion (18.66 percent).
Implications of Abuja’s Rise
The rise of Abuja as the leading destination for foreign capital could signal a shift in investment preferences, possibly driven by improved infrastructure, political stability, policy reforms, or strategic government initiatives aimed at attracting investors to the nation’s capital. The development also raises questions about what this trend means for Lagos, long seen as Nigeria’s financial powerhouse.
Analysts suggest that while Lagos remains crucial to Nigeria’s economy, Abuja’s emergence may reflect a broader diversification of investment destinations within the country, potentially offering new opportunities for both investors and policymakers.
One thought on “Abuja Emerges as the New Leading Destination for Foreign Investment, Surpassing Lagos.”