Foreign Investment in Nigeria’s Trade Sector Jumps 91% to $65.8m Amid Rising Investor Confidence
Nigeria’s trade sector recorded a significant boost in foreign capital inflows in the first quarter of 2026, attracting $65.79 million in investment, a 91.31 percent increase from the $34.39 million recorded during the same period last year. The latest figures from the National Bureau of Statistics highlight growing investor confidence in Nigeria’s commercial landscape, driven by improving economic conditions and stronger cross-border trade activities.
Despite the impressive year-on-year growth, the sector’s performance moderated compared to the final quarters of 2025 when trade attracted $80.94 million and $119.21 million in the third and fourth quarters respectively. Analysts say the slowdown reflects a natural adjustment after a period of exceptionally strong inflows, while maintaining that investor interest in the sector remains robust.
The trade sector also strengthened its position as a major pillar of the Nigerian economy, emerging as the largest contributor to the country’s Gross Domestic Product in the first quarter of 2026 with a 17.89 percent share. According to the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, improved exchange rate stability, better foreign exchange liquidity, easing inflation, and renewed business confidence have helped stimulate commercial activities and trade flows across the country.
Industry experts believe the sector’s growth prospects remain strong as Africa accelerates regional integration under the African Continental Free Trade Area. Seedtree Capital CEO, Bowale Adeoye, noted that innovations in trade finance, digital payment systems, and logistics infrastructure are transforming cross-border commerce by reducing transaction costs and improving settlement efficiency. She added that investments in cold-chain logistics and local value addition are becoming increasingly critical for strengthening Africa’s trade competitiveness.
The Federal Government has also identified trade facilitation as a central component of its 2026 economic agenda, with plans to expand exports, attract investment, promote Made-in-Nigeria products, and leverage digital technologies. With total foreign capital inflows into Nigeria rising to $10.37 billion in the first quarter of 2026, analysts believe the combination of economic reforms, regional trade opportunities, and investor-friendly policies could further position Nigeria as one of Africa’s leading commercial and investment hubs in the years ahead.
source: punch