The Central Bank of Nigeria (CBN) says foreign direct investment (FDI) and portfolio inflows into Nigeria declined in the first quarter (Q1) of 2025.
According to the CBN’s Balance of Payments (BoP) report for Q1 2025, FDI dropped by 19.35 percent to $250 million during the period under review, from $310 million in Q4 2024.
“The financial account recorded a balance of US$7.58 billion in Q1 2025, as against US$7.82 billion in Q4 2024, as a result of huge reduction in portfolio and other investments liabilities,” the apex bank said.
“Portfolio investment (PI) liabilities (inflows) into the economy overturned to a record net divestment/reversal of $5.03 billion in Q1 2025.
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“Direct investment (DI) inflows declined slightly to $0.25 billion in Q1 2025, from $ 0.31 billion in Q4 2024.
“Other investment (OI) liabilities recorded a huge reversal of $4.32 billion in Q1 2025. OI assets recorded an investment outflow of $1.31 billion in Q1 2025 as against a reversal of $1.54 billion in Q4 2024.”
On FDI and FPI assets relating to Nigerian investments abroad, CBN said direct investment assets “recorded a reversal of $0.55 billion in Q1 2025, while portfolio assets recorded an investment outflow of $0.48 billion in the review period”.
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CBN also said external reserves decreased to $37.82 billion in March 2025, from $40.19 billion at the end of December 2024, representing a huge drop of $2.37 billion in three months.
