FDI to Nigeria declines amidst global gallivanting and uncoordinated reforms — Peter Obi

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By Madu Obi

Presidential candidate of the Labour Party, in the 2023 general elections, Mr. Peter Obi has expressed concern over Nigeria’s declining foreign direct investment (FDI), blaming it on ineffective leadership, poor governance, and uncoordinated reforms for the country’s economic stagnation.

Speaking on the latest capital importation report by the National Bureau of Statistics (NBS), Obi noted that despite the frequent overseas trips by the President, Ministers, and other government officials in search of FDI, Nigeria’s poor performance in key governance indicators, such as rule of law, regulatory quality, government effectiveness, and voice and accountability, have continued to undermine investor confidence.

The NBS had observed that FDI to Nigeria fell sharply by about 70% in the first quarter of 2025, dropping to $126.29 million from $421.8 million in the last quarter of 2024. Of the $5.64 billion total capital importation in Q1 2025, FDI accounted for just 2.24%, compared to 8.2% in Q4 2024.

Obi described this as “disturbing,” noting that 90% of the imported capital went into speculative money market instruments, which offer little or no contribution to industrial growth or job creation and can easily exit the economy.

He stressed that sustainable growth cannot be achieved without strong leadership and coordinated reforms.

“Capital flows to the manufacturing sector declined by 32.1%, from $191.92 million in Q1 2023 to $129.92 million in Q1 2025. This is a clear sign of the lack of trust in a government whose reforms remain reactive and uncoordinated,” Obi said.

Citing UNCTAD data, Obi observed that while global FDI flows fell in 2024, Africa experienced a significant 75% rise to $97 billion.

He added: "Egypt led the continent with $46.58 billion, followed by Ethiopia ($3.98 billion), Côte d’Ivoire ($3.80 billion), and several others. Nigeria, however, received just $1.08 billion—about 1% of Africa’s total—marking a 42% drop from 2023. This was followed by a further 75% decline between Q4 2024 and Q1 2025.

The so-called ‘Giant of Africa’ cannot continue this way,. We must fix leadership and governance if we truly want to attract investment, create jobs, and achieve sustainable development", Obi stated.