Nigeria recorded a significant surge in capital inflows in the first quarter of 2025, with total importation rising to $5.64 billion, up by 67.12% from $3.38 billion in the same period of 2024. The latest data from the National Bureau of Statistics (NBS) also shows a 10.86% increase compared to the $5.09 billion recorded in the fourth quarter of 2024.

According to the NBS Capital Importation Q1 2025 report, the sharp increase was largely driven by a spike in portfolio investments, which accounted for the bulk of the capital imported during the period.

“In Q1 2025, total capital importation into Nigeria stood at US$5,642.07 million, higher than US$3,376.01 million recorded in Q1 2024, indicating an increase of 67.12%. In comparison to the preceding quarter, capital importation increased by 10.86% from US$5,089.16 million in Q4 2024,” the NBS stated.

Portfolio inflows dominate, FDI remains weak

Portfolio investment contributed $5.2 billion, representing 92.25% of the total capital inflow. Other investments, including loans and trade credits, followed with $311.17 million (5.52%), while Foreign Direct Investment (FDI) trailed significantly with just $126.29 million, only 2.24% of the total inflows.

This lopsided pattern has persisted in recent years, reflecting foreign investors’ hesitancy to commit long-term funds in Nigeria amid concerns over currency stability, regulatory uncertainty, and structural challenges. While portfolio inflows offer short-term relief for the country’s foreign reserves, analysts continue to warn that Nigeria needs more stable FDI to drive industrialization, job creation, and infrastructure development.

Banking, financing sectors remain most attractive

The banking sector attracted the largest portion of capital importation in Q1 2025, with $3.13 billion, accounting for 55.44% of total inflows. The financing sector followed with $2.1 billion (37.18%), while the production/manufacturing sector managed only $129.92 million (2.30%).

The dominance of banking and financing underscores investor appetite for short-term returns and financial instruments, rather than long-term bets on Nigeria’s industrial or productive base. Manufacturing, once touted as key to economic diversification, continues to attract a marginal share of capital.

UK remains Nigeria’s top capital source

Capital importation into Nigeria during the period came predominantly from the United Kingdom, which contributed $3.68 billion, amounting to 65.26% of total inflows. This was followed by South Africa ($501.29 million) and Mauritius ($394.51 million).

The UK’s position at the top reaffirms its status as a critical financial partner to Nigeria, especially for portfolio investors. The presence of Mauritius, a major offshore financial hub, also suggests some inflows may be routed through tax-friendly jurisdictions.

Abuja and Lagos dominate state-level inflows

Only five states recorded capital importation in Q1 2025, with Abuja (FCT) and Lagos State taking the lion’s share. The FCT attracted $3.05 billion, accounting for 54.11%, while Lagos received $2.56 billion (45.44%).

Ogun, Oyo, and Kaduna states collectively accounted for less than 1% of total inflows, highlighting the heavy concentration of capital in Nigeria’s political and commercial capitals. This pattern continues to raise concerns about regional imbalances in investment and development.

Standard Chartered, Stanbic IBTC lead capital recipients

The report also identified the financial institutions that received the highest capital inflows in Q1 2025. Standard Chartered Bank Nigeria Ltd topped the list with $2.10 billion, followed by Stanbic IBTC Bank PLC with $1.40 billion, and Citibank Nigeria Limited with $1.05 billion.

These banks play key roles as intermediaries for foreign capital entering the country and also reflect the preference of international investors for established, multinational banking institutions with strong global connections.

While the jump in capital importation provides a positive headline for the Nigerian economy, the underlying trends reflect deeper structural issues. The country remains heavily reliant on volatile portfolio inflows, while long-term productive investment remains weak. The continued weakness in FDI, combined with the heavy concentration of inflows in just two sectors and two states, underlines an uneven and fragile investment environment.

Economists warn that unless Nigeria addresses macroeconomic instability, forex market inefficiencies, and insecurity, particularly in industrial and agricultural zones, capital inflows will remain skewed and speculative.

Coinbase has listed Mamo (MAMO), Succinct (PROVE), and Towns Protocol (TOWNS), along with Euler (EUL), as part of its recent expansion of cryptocurrency offerings on August 5, 2025.

MAMO: A token on the Base network, designed as a personal finance companion leveraging AI to optimize portfolio management with low transaction fees and faster processing. Trading for MAMO commenced on or after 9 AM PT on August 6, 2025, with a current price of approximately $0.17 USD and a 42% price surge prior to listing, reflecting strong market interest. Its market cap is around $56.99M, with a circulating supply of 332,599,175 MAMO (33% of its max supply of 1 billion).

PROVE: Launched on the Ethereum network, PROVE is listed under Coinbase’s “Experimental Label” and is already available for trading on Coinbase’s website and mobile apps (iOS and Android). It has seen a significant price increase of 94.12% since its debut, indicating strong initial performance.

TOWNS: Also on the Base network, Towns Protocol (TOWNS) is live and tradable on Coinbase’s platforms, with additional listings on exchanges like Binance and Bybit. It has experienced more volatile performance, with gains of 6.8% since launch. Like PROVE, it carries the “Experimental Label” on Coinbase.

Trading for PROVE and TOWNS is currently active, allowing users to buy, sell, convert, send, receive, or store these assets. MAMO and EUL trading started on August 6, 2025, at 9 AM PT, rolled out in phases as supply is secured. These listings align with Coinbase’s strategy to expand its altcoin portfolio, particularly for AI-driven and Layer-2 solutions, though geographical restrictions may apply due to regulatory compliance.

Investors should note potential volatility and conduct thorough research, as newly listed assets can experience significant price swings. Listing on Coinbase, a leading U.S. exchange with over 110 million verified users, significantly increases the visibility of MAMO and TOWNS, both native to Base. This exposure drives user interest and participation in Base’s ecosystem, attracting both retail and institutional investors.

The listings facilitate trading, with PROVE and TOWNS already live and MAMO trading starting August 6, 2025. Increased trading volumes, as seen with PROVE’s 94.12% price surge and TOWNS’ 6.8% gain, enhance liquidity on Base, making it a more attractive platform for decentralized applications (dApps) and users.

Base’s integration with Coinbase’s ecosystem, including its wallet and fiat on-ramps, simplifies user access to these tokens. This could accelerate the onboarding of Coinbase’s vast user base to Base, aligning with its goal to bring 1 billion users on-chain. Base, built on Optimism’s OP Stack, already competes with L2 solutions like Arbitrum and Polygon due to its low fees and high transaction throughput (85 TPS).

The listing of innovative tokens like MAMO (AI-driven portfolio management) and TOWNS (decentralized social protocols) reinforces Base’s appeal as a hub for cutting-edge dApps, potentially surpassing rivals in total value locked (TVL) and user activity. These listings diversify Base’s offerings, supporting DeFi (MAMO) and Web3 social applications (TOWNS). This broadens Base’s use cases beyond DeFi and NFTs, fostering a more robust ecosystem that rivals Optimism and Arbitrum.

Coinbase’s support for Base-native tokens signals strong backing for developers building on the network. The Base Ecosystem Fund and partnerships with infrastructure providers like Chainlink and The Graph further incentivize dApp development, potentially leading to more innovative projects on Base.

New listings often trigger short-term price spikes, as seen with MAMO’s 8% and PROVE’s 94.12% gains post-announcement. While this drives trading activity, it also highlights the volatility of “Experimental Label” tokens, requiring investor caution. Increased trading on Base could stabilize token prices over time, benefiting the L2 ecosystem.

Base’s use of Optimistic Rollups reduces gas fees and improves transaction speeds, addressing Ethereum’s scalability challenges. The success of MAMO and TOWNS could validate L2 solutions, encouraging other exchanges to list tokens from Arbitrum, Optimism, or Polygon, thus boosting the entire L2 sector.

Coinbase’s plan to decentralize Base through community-driven governance (e.g., via a DAO structure) aligns with the broader L2 trend toward trustlessness. Successful listings could accelerate this transition, enhancing Base’s credibility and inspiring similar moves across L2s.

By attracting users and projects, these listings strengthen Base’s competitive stance against Arbitrum and Optimism, while promoting interoperability and innovation across L2 ecosystems. However, investors should remain cautious of volatility, and developers may find new opportunities to leverage Base’s infrastructure for scalable, low-cost dApps.

Illinois has officially become the first U.S. state to restrict the use of artificial intelligence in mental healthcare, passing a landmark law that prohibits AI from serving as a stand-alone therapist and tightly regulates how licensed professionals can deploy the technology in practice.

Governor JB Pritzker signed the legislation — officially named the Wellness and Oversight for Psychological Resources Act — into law on August 1. Introduced by Representative Bob Morgan, the law seeks to draw a clear boundary: only human professionals licensed in mental health care are permitted to deliver psychotherapeutic services.

The move comes amid growing public concern about AI’s unchecked intrusion into sensitive areas of human life, particularly mental health. In a statement, Rep. Morgan said the law was a proactive response to troubling reports of individuals turning to AI-powered chatbots in moments of crisis, only to be met with dangerous — and in some cases, life-threatening — responses.

“We have already heard the horror stories when artificial intelligence pretends to be a licensed therapist,” Morgan told Mashable. “Individuals in crisis unknowingly turned to AI for help and were pushed toward dangerous, even lethal, behaviors.”

The law is in defiance of a broader push by GOP lawmakers in Washington to block state and local governments from independently regulating AI technologies. Earlier this year, Republicans proposed a sweeping federal bill that would have barred any state or municipality from enacting or enforcing laws aimed at regulating AI systems or automated decision-making technologies for a full ten years.

The bill ultimately failed, and a compromise was reached between Senator Marsha Blackburn (R-Tenn.) and Senate Commerce Chair Ted Cruz (R-Texas).

The revised version ties restrictions on state-level AI regulation to a $500 million federal incentive fund earmarked for telecom infrastructure and deployment. Under the new arrangement, any state that wishes to access the fund must agree to a five-year moratorium on implementing new AI-specific regulations — a notable reduction from the original ten-year proposal. However, exceptions are allowed for state laws regulating unfair or deceptive practices, child sexual abuse material, children’s online safety, and publicity rights.

Illinois’ decision to move ahead with its own AI guardrails despite the looming pressure from Washington signals a growing willingness among states to challenge federal efforts to centralize AI governance.

The new law bars mental health providers from using AI to independently make therapeutic decisions, interact with clients without supervision, or develop treatment plans unless reviewed and approved by a licensed human professional. It also closes loopholes that previously allowed unqualified individuals to advertise themselves as “therapists,” a growing trend driven by unregulated digital platforms.

Violations carry a financial penalty of up to $10,000 per offense, with fines scaling depending on the gravity of the breach. The law takes immediate effect.

A Historic First in U.S. AI Oversight

While several countries have begun exploring ethical frameworks for the use of AI in healthcare, Illinois is the first U.S. state to place direct legal limitations on AI’s role in therapeutic settings. It adds to Illinois’ growing portfolio of AI-related legislation, including recent updates to the state’s Human Rights Act. Those amendments make it unlawful to use AI in discriminatory employment practices — such as relying on zip codes as proxies for race or class — or to deploy AI screening tools without employee notification.

This latest legislation marks a turning point in AI oversight at the state level, signaling a growing discomfort with Silicon Valley’s rapid push to automate core human functions. The decision also serves as a rebuke to tech companies that have marketed AI chatbots as cost-effective substitutes for therapists, despite mounting evidence that such tools lack the emotional nuance, ethical grounding, and diagnostic precision needed for real care.

The Rise and Risk of AI Therapy

Over the past decade, as mental health care costs skyrocketed and access remained limited, a wave of apps and online platforms have emerged offering AI-powered chatbots as scalable solutions. Tools like Woebot, Replika, and even OpenAI’s own ChatGPT have been used by millions seeking mental health support.

Yet mental health professionals have long warned that these platforms are not equipped to handle complex or high-risk psychological needs. In 2023, researchers flagged that some users were taking AI advice as clinical guidance, blurring the line between chatbot conversation and genuine therapy. Experts warn that without clear oversight, these systems could not only breach patient confidentiality but also give harmful advice to vulnerable individuals — something even OpenAI CEO Sam Altman has acknowledged.

In one disturbing case, a Belgian man reportedly died by suicide after weeks of intensive, unsupervised interactions with an AI chatbot, which encouraged harmful ideation under the guise of companionship. The incident reignited calls globally for more rigorous AI regulation, particularly in mental health.

While the Illinois law is being praised by public health advocates and ethics watchdogs, it has also drawn criticism from sectors of the tech industry who argue that AI has the potential to widen access to care. They point to chronic underfunding of mental health systems, shortages of licensed therapists, and rural populations with no access to in-person support.

However, the state’s bold move could set a precedent for other states, many of which are grappling with similar concerns. Lawmakers in California have already introduced legislation related to AI and healthcare, and observers say it’s only a matter of time before the issue reaches the federal level.

“By clearly defining how AI can and cannot be used in mental health care,” said Rep. Morgan, “we’re protecting patients, supporting ethical providers, and keeping treatment in the hands of trained, licensed professionals.”