Foreign capital inflows into Nigeria’s manufacturing sector dropped significantly by 50.7 per cent quarter-on-quarter to $152.27 million in the first quarter of 2026, according to the latest Capital Importation Report released by the National Bureau of Statistics.
The figure represents a sharp decline from the $308.93 million recorded in the final quarter of 2025, underscoring persistent challenges in attracting investment into the country’s productive sectors.
Data from the report shows that manufacturing accounted for just 1.47 per cent of the total $10.37 billion capital inflow recorded during the period, highlighting its marginal contribution to overall foreign investment.
Despite the quarterly contraction, the sector recorded a 17.2 per cent increase on a year-on-year basis, rising from $129.92 million in the first quarter of 2025.
Further breakdown indicates a continued decline in the sector’s share of total inflows, down from 2.3 per cent in Q1 2025 and 4.79 per cent in Q4 2025.
Portfolio investment remained the dominant component of capital importation, contributing $9.86 billion, representing 95.09 per cent of total inflows. Other investments accounted for $374.48 million (3.61 per cent), while foreign direct investment stood at $135.08 million, or 1.30 per cent.
Sectoral analysis shows that the banking industry attracted the largest portion of foreign capital, receiving $7.55 billion, followed by the financing sector with $2.43 billion. Manufacturing trailed significantly behind with $152.27 million.
Commenting on the trend, Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, described the pattern as indicative of structural imbalances in the economy.
He noted that increased capital inflows have not translated into expansion in key productive sectors, warning that limited investment in manufacturing, logistics, and export-oriented industries could constrain job creation and long-term growth.
