UK dominates Nigeria’s Q1 2025 capital inflows with N5.5tn

The United Kingdom emerged as Nigeria’s leading source of foreign capital in the first quarter of 2025, accounting for more than 65 per cent of total inflows, according to the latest Capital Importation Report from the National Bureau of Statistics (NBS).

Data shows that UK investments surged to $3.68bn (₦5.52tn at ₦1,500/$) in Q1, representing 65.26 per cent of the total $5.64bn inflow. This marks a 29.2 per cent increase from $2.85bn in Q4 2024 and a staggering 103.9 per cent rise from $1.81bn in Q1 2024.

Overall, Nigeria recorded $5.64bn capital inflow in Q1 2025, a 10.9 per cent rise compared to Q4 2024 ($5.09bn) and 67.1 per cent higher than the $3.38bn reported in the same period of 2024.

The NBS noted: “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.”

Top sources of inflows

• South Africa – $501.29m (8.88%), up from Q4 2024 but 14% lower than Q1 2024.

• Mauritius – $394.51m (6.99%), more than double Q4 2024 and 119.5% higher than Q1 2024.

• United States – $368.92m (6.54%), down 38.2% from Q4 but over three times higher year-on-year.

• United Arab Emirates – $301.72m (5.35%), surging 178.1% from Q4 and nearly triple Q1 2024.

Other contributors included the Cayman Islands ($114.76m), Belgium ($70.54m), France ($47.33m), Netherlands ($42.68m), and Singapore ($36.79m).

Combined, the UK, South Africa, Mauritius, US, and UAE accounted for over 92 per cent of inflows, underlining Nigeria’s dependence on a narrow set of investor markets — a concentration analysts warn could heighten volatility if sentiment shifts.

Why the UK is leading

The surge aligns with findings from UK-based Strategy Management Partners, which revealed rising British interest in Africa as a growth hub. Its survey of 250 UK executives showed:

• 50% of firms with £20m+ turnover already operate in Africa, with expansion plans underway.

• 28% are exploring entry but remain cautious about strategies.

Investors are drawn by Africa’s demographics, reforms, digital transformation, and resource endowments — including 30% of global mineral reserves, 12% of oil, 8% of natural gas, and 65% of arable land.

Seven sectors stand out as investment magnets: technology, oil and gas, power (renewables inclusive), agriculture, manufacturing, infrastructure, and strategic minerals.

As the report concludes: “Africa is no longer seen merely as a source of raw materials. From Lagos to Nairobi and Cairo, the continent is rewriting its own story — and UK investors are taking note.”