Nigeria’s Banking Sector Attracts $13.53 Billion in Foreign Inflows in 2025 Amid Recapitalisation Drive
Foreign capital inflows into Nigeria’s banking sector hit $13.53 billion in 2025, marking a remarkable 93.25% increase from $7.00 billion recorded in 2024. Analysts attribute this surge to banks intensifying their capital-raising efforts ahead of the Central Bank of Nigeria’s (CBN) recapitalisation deadline, signalling growing investor confidence in the nation’s financial system.
Data from the National Bureau of Statistics (NBS) shows that the banking sector remained the dominant destination for foreign capital, accounting for 58.26% of total inflows in 2025, up from 56.81% in 2024. This highlights the sector’s continued prominence in Nigeria’s capital importation landscape, reinforcing its position as a key driver of economic growth.
Quarterly inflows reveal sustained growth throughout the year, rather than spikes in isolated periods. In Q1 2025, inflows stood at $3.13 billion, rising to $3.41 billion in Q2, $3.14 billion in Q3, and $3.85 billion in Q4. The consistent trend indicates a phased and strategic approach by banks to meet recapitalisation requirements, with foreign investors showing steady participation across all quarters.
The banking sector’s share of total capital importation also remained strong, contributing over $6.53 billion to Nigeria’s overall capital inflow increase of $10.90 billion in 2025. The sector accounted for 55.44% of Q1 inflows, peaked at 66.56% in Q2, and closed the year at 59.75% in Q4. Overall, Nigeria’s total capital importation reached $23.22 billion, up 88.45% from the previous year, reflecting robust investor appetite and improved liquidity conditions.
Experts note that the ongoing recapitalisation drive is a major catalyst for foreign inflows. With new minimum capital thresholds for international banks reaching N500 billion, lenders leveraged equity raises, private placements, and strategic investments to meet regulatory requirements. The CBN confirmed that 32 banks have already met the revised thresholds, mobilising N4.61 trillion in fresh capital and strengthening the financial system ahead of the March 31, 2026 deadline.
source: nairametrics