Former Labour Party presidential candidate, Peter Obi, has voiced serious concerns about the steep decline in Nigeria’s foreign direct investment (FDI) under President Bola Tinubu’s administration. Obi’s critique highlights the alarming 75% drop in FDI between the last quarter of 2024 and the first quarter of 2025, a trend he attributes largely to economic mismanagement and a lack of investor confidence.
According to data from the National Bureau of Statistics and the Central Bank of Nigeria, FDI slumped to $126.29 million in Q1 2025, down sharply from $421.88 million at the end of 2024. While overall capital inflows into Nigeria increased due mainly to investments in short-term financial instruments such as government bonds and treasury bills, long-term, productive investments in sectors like manufacturing, infrastructure, and real estate saw significant contractions.
Obi argued that this decline underscores a growing distrust by foreign investors, stemming from persistent macroeconomic challenges including exchange rate volatility, inflationary pressures, and perceived policy uncertainties in Nigeria. “Global gallivanting or diplomatic travels by government officials won’t bring back FDI if structural issues in the economy remain unaddressed,” Obi remarked, highlighting the need for comprehensive economic reforms to create a stable, investor-friendly environment.
The downturn in FDI poses serious risks for Nigeria’s economic growth and job creation, particularly as manufacturing sector investments fell by over 30% in the same period. Experts warn that without urgent policy realignments aimed at macroeconomic stability, infrastructure development, and regulatory clarity, Nigeria may continue to lose valuable foreign capital essential for sustainable development.
Obi’s comments come amid calls for the Nigerian government to prioritize strengthening institutional frameworks, transparency, and improving the ease of doing business to regain investor confidence. Encouragingly, analysts remain hopeful that stabilization efforts underway might help reverse the trend in coming quarters.
As Nigeria navigates these economic headwinds, Obi’s sharp critique calls attention to the urgent need for pragmatic governance focused on rebuilding trust with global investors and supporting long-term, inclusive growth.
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