The Presidential candidate of Labour Party in the 2023 elections, Peter Obi has blamed the decline in Foreign Direct Investment (FDI) on President’s Bola Tinubu global galavanting, ineffective leadership, poor governance, and uncoordinated reforms for the country’s economic stagnation.
Reacting to the latest capital importation report by the National Bureau of Statistics (NBS) in a statement issued Saturday, Obi noted that despite the frequent overseas trips by the President, ministers, and other government officials in search of FDI, Nigeria’s poor performance in key governance indicators—such as rule of law, regulatory quality, government effectiveness, and voice and accountability—continues to undermine investor confidence.
NBS indicated that FDI to Nigeria fell sharply by about 70 per cent in the first quarter of 2025, dropping to $126.29 million from $421.8 million in the last quarter of 2024.
Of the $5.64 billion total capital importation in Q1 2025, FDI accounted for just 2.24 per cent, compared to 8.2 per cent in Q4 2024.
Obi described this as “disturbing,” noting that 90 per cent of the imported capital went into speculative money market instruments, which offer little or no contribution to industrial growth or job creation and can easily exit the economy.
He stressed that sustainable growth cannot be achieved without strong leadership and coordinated reforms.
Obi added: “Capital flows to the manufacturing sector declined by 32.1 per cent, from $191.92 million in Q1 2023 to $129.92 million in Q1 2025. This is a clear sign of the lack of trust in a government whose reforms remain reactive and uncoordinated.”
Citing UNCTAD data, Obi observed that while global FDI flows fell in 2024, Africa experienced a significant 75% rise 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, received just $1.08 billion—about one per cent of Africa’s total—marking a 42 per cent drop from 2023. This was followed by a further 75 per cent decline between Q4 2024 and Q1 2025.
Obi noted: “The so-called ‘Giant of Africa’ cannot continue this way. We must fix leadership and governance if we truly want to attract investment, create jobs, and achieve sustainable development.”