Nigeria recorded a sharp increase in portfolio investment inflows in the first quarter of 2026, with foreign investors bringing $6.03 billion into the country’s financial market. The figure represents a 14.4% increase from the $5.27 billion recorded previously, making portfolio investment the largest component of Nigeria’s $7.22 billion gross incurrence of financial liabilities during the quarter.
According to the Central Bank of Nigeria’s Q1 2026 Economic Report, the increase was largely driven by stronger foreign purchases of Nigerian equities and other securities. Portfolio investment inflows were nearly six times larger than the $1.03 billion recorded in direct investment liabilities, highlighting the growing role of foreign investors in Nigeria’s securities market.
The stronger portfolio inflows came alongside an improvement in the country’s broader external position. Total foreign exchange inflows rose by 13.26% to $31.34 billion in Q1, while FX outflows declined by 11.78% to $11.01 billion. This resulted in a net FX inflow of $20.33 billion, compared with $15.19 billion in the previous quarter. Nigeria’s external reserves also increased to $48.35 billion by the end of March 2026, enough to cover about 8.84 months of imports.
However, the surge in portfolio investment also means Nigeria’s international financial liabilities are expanding. Total international financial liabilities rose from $220.82 billion to $226.58 billion, while portfolio investment liabilities climbed 14.08% to $58.01 billion. Although direct investment liabilities remained higher at $90.38 billion, portfolio liabilities recorded the fastest growth among the major categories.
The strong appetite for Nigerian securities was also reflected in the fixed-income market, where CBN OMO bills attracted N35.62 trillion in subscriptions against N9 trillion offered. Treasury Bills similarly received N24.93 trillion in bids for N7.97 trillion on offer. The figures point to strong investor demand for Nigerian naira-denominated assets, while also highlighting the need to monitor how increasing portfolio inflows affect the country’s external liabilities and financial stability.
source: nairametrics
