By Ihechi Enyinnaya
Former presidential candidate of the Labour Party, Peter Obi, has raised alarm over what he described as Nigeria’s “disturbing collapse” in foreign direct investment (FDI), blaming the trend on ineffective leadership, weak governance, and uncoordinated economic reforms.
Citing newly released figures from the National Bureau of Statistics (NBS), Obi said FDI inflows to Nigeria fell sharply by about 70% in the first quarter of 2025—dropping to $126.29 million from $421.8 million in the previous quarter. He noted that of the $5.64 billion total capital importation recorded in Q1 2025, FDI accounted for just 2.24%, compared to 8.2% in Q4 2024.
“While the President, Ministers, and other government officials continue their global galivanting in search of FDI, our poor performance in key governance indicators—such as rule of law, regulatory quality, government effectiveness, and voice and accountability—continues to prove that you cannot attract sustainable foreign investment with poor leadership and governance,” Obi said in a statement on Friday.
The former Anambra State governor expressed concern that about 90% of imported capital during the period went into speculative money market instruments, which, he argued, have negligible impact on industrial growth and job creation.
According to him, capital flows to the manufacturing sector also suffered a major setback, declining by 32.1% to $129.92 million in Q1 2025 from $191.92 million in the same quarter of 2023. “This is a clear sign of lack of trust in the current government, whose reforms remain uncoordinated and largely reactive,” Obi added.
Comparing Nigeria’s FDI performance with other African countries, Obi pointed out that while global FDI flows declined in 2024, Africa recorded a 75% surge to $97 billion. 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, attracted just $1.08 billion—about 1% of Africa’s total and a 42% drop from 2023.
“Worse still, after this 42% drop between 2023 and 2024, FDI to Nigeria has further declined by 75% between Q4 2024 and Q1 2025. We cannot achieve sustainable growth and development with ineffective leadership and a weak government,” he warned.
Obi concluded by reaffirming his vision for reform, declaring: “A New Nigeria is possible!”