Nigeria attracted a total of $6.44 billion in capital inflows during the fourth quarter of 2025, marking a 26.6% year-on-year increase from $5.09 billion in Q4 2024, according to the National Bureau of Statistics (NBS). On a quarterly basis, inflows rose by 7.13% from $6.01 billion in Q3 2025, reflecting steady investor confidence despite ongoing macroeconomic challenges.
The NBS data shows that portfolio investments dominated the inflows, accounting for $5.49 billion or 85% of the total, while Foreign Direct Investment (FDI) contributed $358 million, just 5.6% of the total. Money market instruments were the largest driver of portfolio inflows at $3.08 billion, followed by bonds at $1.97 billion, highlighting investors’ preference for liquid and short-term financial assets.
Sector-wise, the financial services industry remained the biggest beneficiary of foreign capital, with banks receiving $3.85 billion—nearly 60% of total inflows—and the financing sector attracting $1.94 billion. In contrast, the real economy sectors, such as production, manufacturing, agriculture, and oil and gas, recorded much lower inflows, pointing to a persistent gap in long-term investment into Nigeria’s productive economy.
The United Kingdom led the sources of inflows with $3.73 billion, followed by the United States ($838 million) and South Africa ($517 million). Top financial institutions managing these inflows included Stanbic IBTC Bank with $2.23 billion, Standard Chartered Bank Nigeria with $1.85 billion, and Citibank Nigeria at $841 million, underscoring the central role of established banks in channeling foreign capital.
Analysts say the surge in portfolio investments reflects improving confidence in Nigeria’s short-term financial instruments amid monetary and fiscal reforms. However, the relatively low level of FDI signals underlying structural challenges, including limited long-term investment appetite and risks in the real sector. While foreign capital is flowing, diversifying inflows into sectors that drive production and job creation remains a key priority.
source: Daily trust