Despite significant economic challenges, Nigeria has managed to attract a total of $55.5 billion in foreign capital between Q1 2019 and Q2 2024.
However, this figure also reflects the broader difficulties the country has faced since the COVID-19 pandemic, particularly with declining oil prices, production challenges, and rising global interest rates.
These factors have severely impacted Nigeria’s ability to draw foreign investment, as international capital became more expensive and less available.
In response, the Nigerian government, under the administration of former President Muhammadu Buhari, implemented strict capital controls aimed at stabilizing the economy.
Capital importation into Nigeria is generally divided into Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).
Here are the top five countries that contributed the most to Nigeria’s capital importation since 2019, ranked based on total capital inflows for the period.
By region, Europe is the largest contributor, accounting for $28.24 billion in capital, driven primarily by investments from the United Kingdom and the Netherlands. Africa comes next, with $9.19 billion, largely dominated by South Africa’s contributions. North America, led by the United States, has injected $7.01 billion, while Asia follows with $6.44 billion, primarily from Singapore and the United Arab Emirates.
The $55.5 billion in capital importation since 2019 highlights the economic hurdles Nigeria has faced in recent years.
The collapse in global oil prices, combined with domestic production challenges and higher global interest rates, has significantly reduced the flow of foreign capital into the country.
These issues, compounded by the capital controls imposed during the Buhari administration, further strained investor confidence and resulted in a sharp drop in foreign investments.
The current administration under President Bola Tinubu has introduced several reforms aimed at reversing these trends and attracting foreign capital.