UK’s investment in Nigeria made up over 65% of Q1 2025 capital inflows, rising with N5.5tn, highlighting strong financial ties and renewed British interest in African growth markets

UK’s investment in Nigeria reached new heights in the first quarter of 2025, accounting for over 65 per cent of total capital inflows, according to the latest Capital Importation report by the National Bureau of Statistics (NBS).

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The United Kingdom alone contributed $3.68 billion out of Nigeria’s total $5.64 billion in Q1 inflows — a powerful indicator of Britain’s dominance in Nigeria’s foreign investment landscape.

This marks a 29.2 per cent increase from Q4 2024 and an impressive 103.9 per cent year-on-year jump from Q1 2024.

The numbers position the UK not just as a major partner but as the clear leader in Nigeria’s external financing.

The NBS report confirmed, “Capital Importation during the reference period originated largely from the United Kingdom with $3,681.96 million, showing 65.26 per cent of the total capital imported.”

Trailing behind the UK, South Africa ranked second with $501.29 million (8.88%), followed by Mauritius with $394.51 million (6.99%), the United States with $368.92 million (6.54%), and the United Arab Emirates with $301.72 million (5.35%).

Combined, these five countries accounted for over 92 per cent of Nigeria’s total capital inflows in Q1 2025.

The sharp rise in UK’s investment in Nigeria aligns with broader strategic shifts.

A Q1 2025 survey by UK-based Strategy Management Partners revealed that British businesses increasingly view Africa as a priority growth frontier.

Among 250 surveyed UK executives, 50 per cent of companies with over £20 million in annual turnover are already active in African markets, while 28 per cent express strong interest in entering the continent.

Their motivation is clear: Africa offers 30% of global mineral reserves, vast natural resources, 65% of the world’s arable land, and a rapidly growing workforce projected to reach 25% of the global total by 2035.

Strategic sectors attracting this surge in investment include technology, oil and gas, renewables, agriculture, manufacturing, infrastructure, and critical minerals.

“As Africa evolves into a more dynamic and digitally empowered economy, UK’s investment in Nigeria is no longer just about resources — it’s about long-term growth and partnership,” the report noted.

While this level of investment underscores strong bilateral ties and confidence in Nigeria’s economic potential, analysts also caution that such concentration could pose risks.

A shift in investor sentiment in these key countries, especially the UK, could significantly affect Nigeria’s financial inflows.

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Nonetheless, the outlook remains positive as Nigeria continues implementing structural reforms aimed at improving the business environment and attracting sustainable capital.