Obi and Tinubu
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Peter Obi, the 2023 presidential candidate of the Labour Party, has criticised the Federal Government for Nigeria’s declining foreign direct investment, FDI.
He attributed the development to fumbling governance and uncoordinated reforms of the President Bola Tinubu administration.
Obi noted that the frequent overseas trips by President Bola Tinubu, ministers, and other government officials in search of FDI have not yielded any positive result, as Nigeria’s poor performance in key governance indicators, such as rule of law, regulatory quality, government effectiveness, and voice and accountability have continued to impact negatively on investor confidence.
According to 2023 report by the National Bureau of Statistics, NBS, the FDI to Nigeria fell sharply by about 70% 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%, compared to 8.2% in Q4 2024.
Obi expressed concern over the development, describing the report as “disturbing.”
He noted that 90% of the imported capital went into speculative money market instruments, which offered little or no contribution to industrial growth or job creation and could easily exit the economy.
The presidential hopeful stressed that sustainable growth would not be achieved without strong leadership and coordinated reforms.
“Capital flows to the manufacturing sector declined by 32.1%, 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,” Obi said.
He cited 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 1% of Africa’s total, marking a 42% drop from 2023. This was followed by a further 75% decline between Q4 2024 and Q1 2025.
“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,” Obi warned.
