Foreign Capital Inflows Rise 84% to $10.37 Billion as Investors Flock into Nigerian Assets – THIS END

By Ayo Kehinde

Nigeria recorded a sharp increase in foreign capital inflows in the first quarter of 2026, attracting $10.37 billion, an increase of 83.8% from the $5.64 billion recorded in the same period in 2025, according to data released by the National Bureau of Statistics (NBS).

The latest data also shows a 61% quarter-on-quarter increase from $6.44 billion recorded in the fourth quarter of 2025, reflecting growing investor confidence in Nigerian financial assets, particularly money market instruments and bonds.

Portfolio investment remained the largest source of inflows, accounting for $9.86 billion, or 95.1% of total capital imported during the quarter. This represents an 89.5% year-over-year increase and a 79.8% increase from the previous quarter.

Money market instruments attracted $6.50 billion, while bond investments reached $3.23 billion, together contributing more than 98% of total portfolio inflows.

Despite the overall surge, foreign direct investment (FDI) remained subdued at $135.08 million, representing just 1.3% of total inflows.

While this was 7% higher than the previous year, it declined more than 62% compared to the fourth quarter of 2025. Other investments contributed $374.48 million, largely in the form of loans.

Sectoral data showed that the banking sector remained the biggest beneficiary, attracting $7.55 billion, or 72.8% of total inflows.

The financial sector follows with $2.43 billion, meaning both sectors accounted for more than 96% of all foreign capital imported during the quarter.

The United Kingdom emerged as the largest source of capital, contributing $5.08 billion, followed by the United States with $3.18 billion and South Africa with $983.83 million.

Among financial institutions, Standard Chartered Bank Nigeria processed the largest volume of inflows with $4.41 billion, ahead of Stanbic IBTC Bank’s $2.78 billion.

The data highlights foreign investors’ continued preference for short-term financial assets over long-term productive investments in the Nigerian economy.

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