Nigeria's Manufacturing Capital Inflows Plummet 51% in Q1

In the first quarter of 2026, Nigeria's manufacturing sector experienced a significant decline in foreign capital inflows, which dropped by 51% to $152.27 million, accounting for 1.47% of the total capital import of $10.37 billion during the quarter. This represents a decrease of $308.93 million from the previous quarter, indicating a weaker quarterly investor appetite for industrial products.

However, there was a 17.2% increase in inflows compared to the first quarter of 2025, which saw $129.92 million. The total capital import rose by 83.8% year-on-year to $5.64 billion in the first quarter of 2025, primarily driven by large portfolio investments.

Foreign direct investment in the manufacturing sector stood at $135.08 million, representing 1.3% of total inflows and a 62% decline from the previous quarter. The manufacturing sector continues to face structural challenges, including high energy costs and logistical constraints, which affect investor sentiment and the ability to attract long-term capital necessary for industrial expansion and economic diversification.