Domestic capital replaces foreign inflows as manufacturing FDI drops to eight-year low
Foreign investment in Nigeria’s production and manufacturing sector declined to its lowest level in nine years in the first nine months of 2025, underscoring a shift in capital dynamics as domestic financing increasingly fills the gap once occupied by offshore investors.
An analysis of the National Bureau of Statistics (NBS)–capital importation data shows that the manufacturing sector attracted $463.52 million in the nine months of 2025, a 118.1 percent decline from $1.01 billion in the corresponding period of 2024.
The 2025 inflow is below levels recorded since 2017, when about $445 million was reported. The decline comes at a time when broader business confidence indicators suggest investors are increasingly optimistic about macroeconomic reforms and currency stabilisation in Nigeria.
