Foreign direct investment (FDI) and portfolio inflows into Nigeria fell sharply in the first quarter of 2025, according to new data released by the Central Bank of Nigeria (CBN).
The CBN’s Balance of Payments (BoP) report for Q1 2025 shows that FDI declined by 19.35 percent to $250 million, down from $310 million recorded in the final quarter of 2024.
The report also highlights a significant downturn in portfolio investments (PI), with inflows reversing to a net divestment of $5.03 billion. This contributed to a weakening financial account balance, which fell to $7.58 billion in Q1 2025 from $7.82 billion in Q4 2024. The apex bank attributed the decline to a “huge reduction in portfolio and other investment liabilities.”
Other investment (OI) liabilities also suffered a reversal of $4.32 billion in the first quarter, while OI assets posted an outflow of $1.31 billion, contrasting with a reversal of $1.54 billion in the previous quarter.
In terms of Nigerian investments abroad, the report noted that direct investment assets recorded a reversal of $550 million, and portfolio assets showed an investment outflow of $480 million.
The country’s external reserves were not spared by the broader capital flight. The CBN said reserves dropped to $37.82 billion in March 2025, down from $40.19 billion at the end of December 2024 — a decline of $2.37 billion within three months.
