In a historic shift in Nigeria’s investment landscape, Abuja, the Federal Capital Territory (FCT), has overtaken Lagos as the leading destination for foreign capital inflows, according to the latest data from the National Bureau of Statistics (NBS).
For years, Lagos held the top position as Nigeria’s financial and commercial hub, consistently attracting the lion’s share of foreign investments. However, in the first quarter of 2025 (Q1 2025), the tables turned.
📊 Capital Inflow Breakdown
According to the NBS Capital Importation Report:
- Abuja (FCT) recorded $3.047 billion in foreign capital inflow, accounting for 54.11% of the total.
- Lagos State followed with $2.564 billion, representing 45.44% of inflows.
- Other states, including Ogun, Oyo, and Kaduna, received minimal amounts, with some attracting less than $8 million each.
The total foreign capital imported into Nigeria in Q1 2025 stood at $5.64 billion, reflecting a 67.1% year-on-year increase from the $3.38 billion recorded in Q1 2024. It also marked a 10.9% increase from the previous quarter (Q4 2024).
💼 Investment by Type and Sector
The report revealed that the majority of the capital came in the form of portfolio investments, which accounted for 92.25% of total inflows. Other investments made up 5.52%, while Foreign Direct Investment (FDI) contributed just 2.24%.
By sector, the banking industry attracted the highest capital—$3.12 billion—followed by finance ($2.09 billion) and manufacturing ($130 million).
🌍 Top Sources of Investment
The United Kingdom was the highest source of capital inflow into Nigeria during the quarter, contributing $3.68 billion, or 65.3% of total investments. Other top contributors included:
- South Africa – $501 million
- Mauritius – $395 million
- Singapore – $109 million
These figures reinforce Nigeria’s strong financial ties with key global markets, especially the UK.
🏛️ What Led to Abuja’s Rise?
Economic analysts suggest several factors may have contributed to Abuja’s sudden rise:
- Improved investor confidence in the FCT due to relative political stability and national-level governance.
- Proximity to federal institutions, policymaking bodies, and diplomatic missions.
- Ongoing infrastructure development and a less congested business environment compared to Lagos.
While Lagos remains the economic engine of Nigeria, Abuja’s emergence signals a broader decentralization of investment appeal, particularly among foreign portfolio investors seeking access to regulatory and administrative hubs.
📉 Implications for Lagos and Other States
This development has raised concerns over Lagos’ gradually diminishing dominance. Experts warn that if key issues such as congestion, infrastructure strain, and inconsistent regulatory frameworks are not addressed, more investors may shift to alternative locations like Abuja.
For other states, the data signals an urgent need to revamp investment strategies, improve security, and create more enabling environments to attract foreign capital.
Conclusion
Abuja’s new position as Nigeria’s top destination for foreign investment marks a significant moment in the country’s economic narrative. While Lagos still holds considerable weight in commerce and industry, this development may lead to greater geographical diversification of investments in Nigeria—provided states and the federal government take proactive steps to sustain investor confidence.
As foreign capital continues to play a critical role in Nigeria’s economic growth, all eyes will be on whether Abuja can maintain this momentum—and how Lagos will respond to reclaim its leading role.
