Manufacturing capital inflows crash 50% despite record total capital imports in Q1 2026
By Aboki Forex —
Nigeria’s manufacturing sector suffered a sharp drop in foreign capital inflows in the first quarter of 2026, even as total capital importation into the country surged. Data from the National Bureau of Statistics (NBS) shows the sector attracted only $152.27 million in Q1. That is a 50.7 per cent decline from $308.93 million recorded in the previous quarter.
The manufacturing sector accounted for just 1.47 per cent of the $10.37 billion total capital imported into Nigeria in Q1 2026. The slump raises fresh concerns about investor appetite for productive sectors, despite government efforts to push industrialisation and economic diversification.
Year-on-year gain masks quarterly weakness
On a year-on-year basis, manufacturing inflows rose 17.2 per cent from $129.92 million in Q1 2025. But the quarterly decline suggests investor interest is fading. For the whole of 2025, the sector attracted a total of $772.45 million in foreign capital.
Manufacturing is critical for job creation, export growth and foreign exchange earnings. A sustained drop in investment could limit the sector’s ability to expand production and compete globally.
Portfolio investments dominate total inflows
Overall capital importation jumped 83.8 per cent year-on-year to $10.37 billion in Q1 2026, up from $5.64 billion in Q1 2025. But the bulk of that growth came from portfolio investments and short-term capital flows. Long-term investments in manufacturing, agriculture and infrastructure remained tiny.
Foreign Direct Investment (FDI) stood at $135.08 million in Q1 2026. That is just 1.3 per cent of total capital imports. FDI dropped more than 62 per cent from the previous quarter, though it posted a modest year-on-year increase.