Abuja Overtakes Lagos as Nigeria’s Top Foreign Investment Destination

ABUJA, NIGERIA – The Federal Capital Territory (FCT) has, for the first time, surpassed Lagos State to become Nigeria’s leading destination for foreign investment. This significant shift in the country’s economic landscape was revealed in the Q1 2025 Capital Importation report released by the National Bureau of Statistics (NBS).

According to the report, Abuja attracted a staggering $3.04 billion in capital importation during the first quarter of 2025, accounting for over 54% of the total foreign inflow. This figure outpaced Lagos, which drew $2.54 billion, a considerable sum but still relegated to the second position after years of dominance.

The report also shows a substantial increase in Nigeria’s overall foreign capital importation, rising by over 67% to $5.64 billion compared to the same period in 2024. This surge is largely attributed to a significant increase in portfolio investments, which accounted for over 92% of the total inflow. The banking sector was the primary beneficiary, receiving the highest inflow of capital during the quarter.

While this development is a positive sign for the nation’s economy, some analysts express caution. The dominance of portfolio investments, often referred to as “hot money,” suggests that foreign capital is flowing into short-term financial instruments rather than long-term, job-creating Foreign Direct Investment (FDI). Despite the overall increase in capital importation, FDI remains the lowest contributor at just over 2% of the total.

The NBS report highlights the growing confidence of foreign investors in Nigeria’s economy, but also underscores the need to attract more sustainable, long-term investments. The government’s challenge now is to convert this positive momentum into policies that encourage FDI, thereby creating a more stable and resilient economic environment for all.