Nigerian Capital Inflows Rise 90% to $23.22 Billion
Nigerian capital inflows rose to $23.22 billion last year as investors sought high yields. Foreign portfolio investment drove the bulk of the annual growth.
Nigeria experienced a significant 90% increase in capital inflows during 2025, as foreign investors returned to the country's financial markets to take advantage of high bond yields following recent economic reforms. Official data indicates that net capital invested from abroad climbed to $23.22 billion, up from $12.32 billion in 2024. This growth was largely driven by foreign portfolio investment, which surged to $19.74 billion from $8.38 billion, representing approximately 85% of the total inflows.
Within the various investment categories, inflows into money-market instruments reached $13.83 billion. Bond inflows saw a dramatic nearly fivefold increase, rising to $4.89 billion, while equity portfolio investment grew to $2.10 billion.
In contrast, foreign direct investment showed only a modest rise to $923 million from $675 million in 2024. This disparity highlights a continued caution among investors regarding long-term physical commitments. Other investment types, including loans, saw a decline, falling to $2.55 billion from $3.27 billion in the previous year.
The United Kingdom was identified as the largest source of these inflows, accounting for 58% of the total capital. The banking sector was the primary recipient of this investment. Analysts noted that while the data reflects a renewed interest in trading Nigerian assets, the focus remains on short-term yields rather than long-term productive investment, which may leave the economy vulnerable to shifts in global financial conditions.
