KEY POINTS
- Capital inflows rose sharply in 2025
- Portfolio investment drove majority inflows
- Banking sector attracted largest share
National Bureau of Statistics reported a sharp rise in Nigeria capital importation in 2025, signaling renewed investor interest in the country’s economy. Total inflows climbed by 88.5 percent year on year to $23.21 billion, up from $12.31 billion recorded in 2024.
Nigeria capital importation showed a steady recovery across the year, despite some quarterly fluctuations. Analysts say the trend reflects improving market sentiment, although underlying risks remain.
Strong quarterly performance
In the first quarter, inflows reached $5.64 billion. However, Nigeria capital importation dipped by 9.2 percent in the second quarter to $5.12 billion before rebounding. The third quarter recorded a 17.4 percent increase to $6.01 billion, while the fourth quarter rose further by 7.15 percent to $6.44 billion.
On a year on year basis, fourth quarter inflows increased by 26.61 percent compared with the same period in 2024. This consistent upward movement points to stronger foreign participation toward the end of the year.
Portfolio investment dominated, accounting for 85.14 percent of total inflows at $5.49 billion in the fourth quarter. Other investment contributed 9.31 percent, while foreign direct investment lagged at 5.55 percent, highlighting a continued preference for short-term capital.
Banking sector leads inflows
Sectoral analysis shows the banking sector attracted the largest share of Nigeria capital importation, receiving $3.85 billion in the fourth quarter. The financing sector followed, while production and manufacturing accounted for a smaller portion of total inflows.
Geographically, the United Kingdom emerged as the top source of capital, contributing 57.94 percent of inflows. The United States and South Africa followed with smaller shares, reflecting Nigeria’s continued ties to major global financial markets.
Meanwhile, economists note that the dominance of portfolio flows could expose the economy to volatility. Still, the sharp increase in Nigeria capital importation suggests improved liquidity and investor appetite, particularly in financial assets.
Sustaining this momentum, however, will depend on policy stability, currency management and efforts to attract more long-term investment into productive sectors.
