Nigeria Attracts $285 Million in Foreign Capital from African Investors – NBS

Nigeria received $285 million in foreign capital inflows from African investors in the third quarter of 2024, according to data released by the National Bureau of Statistics (NBS). The figure highlights the growing interest of intra-African investments in Nigeria’s economy, driven by opportunities in key sectors such as energy, technology, and manufacturing.

The NBS report revealed that the funds were channeled primarily into the banking, telecommunications, and oil and gas sectors, which continue to attract significant attention due to their growth potential and strategic importance to the continent. Financial services accounted for the largest share of the inflows, reflecting the confidence of regional investors in Nigeria’s banking sector reforms and its robust market size.

Analysts have attributed the increase in African investments to initiatives like the African Continental Free Trade Area (AfCFTA), which aims to enhance cross-border trade and investment opportunities within the continent. They also noted that Nigeria’s large consumer market and ongoing infrastructural development projects make it a preferred destination for regional investors.

However, experts cautioned that Nigeria must address persistent challenges such as inconsistent policies, security concerns, and infrastructure deficits to sustain and expand these inflows. “While the capital inflow is encouraging, creating a more stable and business-friendly environment is essential for attracting long-term investments,” said a market analyst.

The NBS data underscores the importance of fostering regional economic cooperation and leveraging African capital to drive domestic growth. As Nigeria seeks to diversify its economy and reduce dependence on oil revenues, the role of intra-African investments is expected to become increasingly significant in shaping the country’s economic trajectory.