By Yinka Kolawole 

Foreign investment into Nigeria’s production and manufacturing sector declined sharply by 50.7 percent quarter-on-quarter to $152.27 million in the first quarter of 2026 (Q1’26), down from $308.93 million recorded in the preceding quarter (Q4’25), according to the latest Capital Importation Report released by the National Bureau of Statistics (NBS).

The report revealed that the sector accounted for only 1.47 per cent of the total capital importation valued at $10.37 billion recorded during the review period, highlighting the continued struggle to attract significant foreign capital into the productive segment of the economy.

However, on a year-on-year basis, foreign investment in the sector rose by 17.2 per cent from $129.92 million recorded in the corresponding period of 2025 (Q1’25).

Further analysis of the NBS data showed that the manufacturing sector’s share of total capital inflows has continued to shrink. The 1.47 per cent contribution recorded in Q1’26 was lower than the 2.3 per cent recorded in Q1’25 and significantly below the 4.79 per cent posted in Q4’25.

The report indicated that portfolio investment remained the dominant source of foreign capital, accounting for $9.86 billion or 95.09 per cent of total inflows during the quarter. Other Investments contributed $374.48 million, representing 3.61 per cent, while Foreign Direct Investment (FDI) amounted to $135.08 million, accounting for just 1.30 per cent of total capital imported into the economy.

Sectoral distribution of the inflows showed that the banking sector attracted the largest share of foreign capital, receiving $7.55 billion or 72.79 per cent of total inflows. The financing sector followed with $2.43 billion, representing 23.42 per cent, while production and manufacturing attracted only $152.27 million.

Reacting to the development, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the pattern of capital inflows reflects a persistent structural weakness in the economy, noting that increased foreign capital is yet to translate into meaningful expansion of productive capacity.

He stated: “Without stronger capital flows into industry, agro-processing, logistics, energy and export-oriented manufacturing, the broader economy will see limited gains in employment, productivity and inclusive growth.

“Financial deepening without real-sector expansion risks creating a liquidity-driven recovery that does not fundamentally alter Nigeria’s productive base.”

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The Federal Government and six state governments have urged investors at the ongoing Invest in Lagos 3.0 Summit to channel funds into critical sectors, promising attractive returns and improved business conditions.

The summit, themed “Lagos: The Business Gateway to Africa,” featured presentations from representatives of the Presidency and the governors of Lagos, Imo, Abia, Plateau, Taraba and Nasarawa states.

Minister of Finance, Dr. Taiwo Oyedele, assured investors of the Federal Government’s commitment to creating a conducive business environment through ongoing fiscal reforms. He said the new tax law has eliminated multiple taxation, improved compliance and provided relief for small and medium enterprises. He added that stamp duty collection has been transferred to state governments and commended states that have adopted harmonised tax systems.

Oyedele told the more than 600 delegates—including global institutions, sovereign wealth funds, development finance institutions and trade networks—that the government remains committed to building a $1 trillion economy through supportive fiscal and monetary policies.

Lagos State Governor, Babajide Sanwo-Olu, called for increased private sector investment in rail transport, energy, agriculture, agro-processing and water infrastructure. He said addressing transportation challenges would unlock Lagos’ economic potential, reduce travel time, boost productivity and improve returns on investment.

Abia State Governor, Dr. Alex Otti, said his administration is redesigning Aba and major business clusters to harness the entrepreneurial strengths of residents. Imo State Governor, Hope Uzodinma, highlighted efforts to address infrastructure deficits and drive industrialisation, while Nasarawa State Governor, Abdullahi Sule, promoted investment opportunities in agriculture and urban development, leveraging the state’s proximity to Abuja.

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United Bank for Africa (UBA) Plc, has been named the winner of the African category at the 2026 Banker Technology Awards, recognised for its innovations in digital payments, e-business, and the use of artificial intelligence to drive seamless cross-border banking across more than 20 African markets.

In its assessment of UBA’s winning entry, The Banker noted that “the bank has cemented its status as a leading digital operator by placing technology at the centre of its growth strategy across more than 20 countries, with this approach most visible in its work on cross-border transfers, spanning digital payments, AI-driven engagement, and e-business”

UBA’s recognition centres on integrating Leo, its AI-powered chatbot, with the Pan-African Payment and Settlement System (PAPSS), enabling customers to send funds across borders in local currencies via a conversational interface.

UBA’s Executive Director Designate, Digital Banking, Emmanuel Lamptey, who received the award on behalf of the bank, emphasised the bank’s aim to fully digitise banking across the entire continent

“Africa’s financial future will not be built on branches or borders. It will be built on intelligence, interoperability, and trust at scale,” Lamptey said.

He added that the bank’s investment in Leo was a direct response to the cost and friction that has long defined cross-border payments on the continent. “Across a continent where cross-border transfers have historically been slow and costly, Leo reduces friction at the point of transaction, removing reliance on traditional banking channels without requiring customers to change how they communicate,” Lamptey said.

Alongside the award, UBA has relaunched its RedApp mobile banking platform following a comprehensive upgrade. The revamped application is designed to deliver a faster, more intuitive digital banking experience for customers across the bank’s markets.

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