The United Kingdom has emerged as the dominant source of foreign capital flowing into Nigeria in the first quarter of 2025, according to new data from the National Bureau of Statistics (NBS).
The NBS Capital Importation Report revealed that UK-based investors brought in $3.68 billion (₦5.52 trillion at ₦1,500/$) between January and March, accounting for 65.26 percent of Nigeria’s total inflows during the quarter.
Overall, Nigeria recorded $5.64 billion in capital importation in Q1 2025, up 10.9 percent from the $5.09 billion received in Q4 2024, and 67.1 percent higher than the $3.38 billion posted in the same period last year.
The NBS report stated:
“Capital Importation during the reference period originated largely from the United Kingdom with $3,681.96m, showing 65.26 per cent of the total capital imported.”
South Africa, Mauritius, US, UAE follow behind
South Africa was the second-largest contributor, with $501.29 million (8.88 percent), followed by Mauritius ($394.51m, 6.99 percent), the United States ($368.92m, 6.54 percent), and the United Arab Emirates ($301.72m, 5.35 percent).
Other notable sources included the Cayman Islands ($114.76m), Belgium ($70.54m), France ($47.33m), the Netherlands ($42.68m), and Singapore ($36.79m).
Together, the top five countries accounted for more than 92 percent of total inflows, underscoring Nigeria’s reliance on a small group of financial partners. Analysts warn this concentration exposes the country to external risks if investor sentiment shifts in those economies.
Why UK capital is pouring into Nigeria
The sharp rise in UK investment reflects broader trends. A recent survey of 250 British executives by Strategy Management Partners found that half of UK firms with annual revenue above £20m already operate in Africa and are planning further expansion. Another 28 percent expressed interest in entering African markets but remain cautious.
Drivers of this interest include Africa’s vast mineral reserves, energy potential, fertile land, and young workforce. By 2035, the continent is expected to house a quarter of the world’s working-age population.
The research identified technology, oil and gas, power (including renewables), agriculture, manufacturing, infrastructure, and strategic minerals as the sectors most attractive to foreign capital.
“At the heart of this pivot is Africa’s evolving economic identity. No longer seen merely as a source of raw materials, the continent is now being recognised for its transformational potential. From Lagos to Nairobi and Cairo, Africa is rewriting its own story, and UK investors are taking note,” the study noted.
Outlook
Nigeria’s strong Q1 inflows highlight renewed global confidence in its economy, but also the risks of overdependence on a handful of countries. Policymakers and analysts say diversifying investment sources and sustaining reforms will be critical to stabilizing future inflows.