Central Bank of Nigeria (CBN) has reported a decline in foreign direct investment (FDI) and portfolio inflows into Nigeria in the first quarter (Q1) of 2025.
Gatekeepers News reports that CBN’s Balance of Payments (BoP) report for Q1 2025, showed that FDI dropped by 19.35 percent to $250 million during the period under review, from $310 million in Q4 2024.
CBN said, “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.”
“Portfolio investment (PI) liabilities (inflows) into the economy overturned to a record net divestment/reversal of $5.03 billion in Q1 2025.”
“Direct investment (DI) inflows declined slightly to $0.25 billion in Q1 2025, from $ 0.31 billion in Q4 2024.”
“Other investment (Ol) liabilities recorded a huge reversal of $4.32 billion in Q1 2025. 01
assets recorded an investment outflow of $1.31 billion in Q1 2025 as against a reversal of $1.54 billion in Q4 2024.”
For Nigerian investments abroad, direct investment assets reversed by $0.55 billion, while portfolio assets recorded an investment outflow of $0.48 billion in Q1 2025.
Additionally, the apex bank said Nigeria’s external reserves fell to $37.82 billion as of March 2025, down from $40.19 billion in December 2024, marking a huge drop of $2.37 billion in three months.
