Foreign direct investments (FDI) in the manufacturing sector of Nigeria experienced a significant rise, climbing by $644 million to reach $1.5 billion in 2023, as reported by the National Bureau of Statistics (NBS).
The NBS capital importation report highlighted manufacturing as the top sector attracting investments, comprising 39 percent of the total capital importation of $3.8 billion during the year.
Overall, foreign investments in Nigeria declined to $3.8 billion from $5.4 billion in 2022. Other investments attracted $2.37 billion, followed by portfolio investment at $1.1 billion and foreign direct investment at $377.3 million.
Lagos State emerged as the top destination, receiving $2.5 billion, with Abuja following closely at $1.1 billion. Other states, such as Abia and Rivers, also recorded notable investment inflows.
However, 29 states failed to attract any investments during the period, indicating a need for targeted efforts to boost investment attraction nationwide.
In recent years, Nigeria has witnessed a consistent decline in foreign investments, totaling $18.6 billion over four years (2019–2022). Despite this decline, Lagos State remained the frontrunner, accumulating the highest foreign investments, followed by the Federal Capital Territory.
As Nigeria seeks to revitalise its investment landscape, focusing on key sectors like manufacturing can play a crucial role in driving economic growth and attracting much-needed capital inflows.
