The Labour Party presidential candidate in the 2023 elections, Peter Obi, has criticised the Federal Government over what he described as “global galivanting” and “uncoordinated reforms,” saying Nigeria’s worsening governance indicators are driving away foreign direct investment (FDI).
In a post on his X handle, Obi cited new figures from the National Bureau of Statistics (NBS) showing that FDI into Nigeria plunged by about 70 percent in the first quarter of 2025, falling to $126.29 million from $421.8 million in the last quarter of 2024.
According to him, FDI accounted for just 2.24 percent of the total capital importation of $5.64 billion in Q1 2025, compared to 8.2 percent in Q4 2024. He expressed concern that roughly 90 percent of incoming capital was channelled into speculative money market instruments, which he described as “hot money” that offers minimal impact on industrial growth or job creation.
“The impact on the economy is insignificant and elusive given the ease with which such speculative funds can exit,” Obi said, stressing that sustainable economic growth requires strong governance, effective leadership, and coordinated reforms.
He also highlighted a steep drop in manufacturing sector inflows, which fell by 32.1 percent to $129.92 million in Q1 2025 from $191.92 million in the same quarter of 2023. Obi said this reflects a lack of investor trust in the current administration.
Drawing comparisons with the rest of the continent, the former Anambra State governor noted that while global FDI flows declined in 2024, Africa saw a 75 percent increase, attracting $97 billion in total. Egypt led the continent with $46.58 billion, followed by countries such as Ethiopia, Côte d’Ivoire, Mozambique, and South Africa.
Nigeria, he lamented, attracted just $1.08 billion in 2024 — around 1 percent of Africa’s total — representing a 42 percent drop from 2023. This, he added, was followed by a further 75 percent decline between Q4 2024 and Q1 2025.
“There is no better confirmation of the lack of trust in this government, whose reforms remain uncoordinated and largely reactive,” Obi stated. “We cannot achieve sustainable growth and development with ineffective leadership and a weak government.”
