CHINESE INVESTMENT INFLOWS TO NIGERIA DROP 41% DESPITE $20BN COMMITMENT

Capital inflows from China to Nigeria declined by 41 percent despite a $20 billion investment pledge, highlighting the gap between announced commitments and actual investment flows.

The decline comes amid shifting global economic conditions, investor caution, and implementation challenges that have slowed the pace of foreign capital entering Africa's largest economy. Analysts noted that while investment pledges signal long-term interest, converting them into executed projects often depends on regulatory certainty, infrastructure readiness, and the overall business climate.

Despite the drop in capital inflows, China remains one of Nigeria’s key economic partners, with investments spanning infrastructure, manufacturing, mining, energy, and telecommunications. The two countries continue to strengthen trade and economic cooperation through bilateral agreements and development initiatives.

Economists said Nigeria can attract more Chinese investment by improving policy consistency, streamlining approval processes, and addressing foreign exchange and infrastructure constraints.

They added that translating investment commitments into completed projects will be critical to boosting industrialisation, creating jobs, expanding infrastructure, and supporting long-term economic growth.